Critical Survey: ProMIS Neurosciences (NASDAQ:PMN) and Regulus Therapeutics (NASDAQ:RGLS)

Regulus Therapeutics (NASDAQ:RGLS) and ProMIS Neurosciences (NASDAQ:PMN) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

This table compares Regulus Therapeutics and ProMIS Neurosciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regulus Therapeutics	N/A	N/A	-$30.04 million	($1.46)	-1.08
ProMIS Neurosciences	$10,000.00	2,370.13	-$13.21 million	($0.74)	-1.69

ProMIS Neurosciences has higher revenue and earnings than Regulus Therapeutics. ProMIS Neurosciences is trading at a lower price-to-earnings ratio than Regulus Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.4% of Regulus Therapeutics shares are owned by institutional investors. Comparatively, 50.1% of ProMIS Neurosciences shares are owned by institutional investors. 4.4% of Regulus Therapeutics shares are owned by insiders. Comparatively, 6.4% of ProMIS Neurosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Regulus Therapeutics and ProMIS Neurosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regulus Therapeutics	N/A	-55.47%	-49.37%
ProMIS Neurosciences	N/A	-587.38%	-133.87%

Analyst Ratings

This is a summary of recent recommendations and price targets for Regulus Therapeutics and ProMIS Neurosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regulus Therapeutics	0	1	5	0	2.83
ProMIS Neurosciences	0	0	1	0	3.00

Regulus Therapeutics presently has a consensus price target of $10.80, suggesting a potential upside of 587.90%. ProMIS Neurosciences has a consensus price target of $8.00, suggesting a potential upside of 540.00%. Given Regulus Therapeutics’ higher possible upside, equities research analysts clearly believe Regulus Therapeutics is more favorable than ProMIS Neurosciences.

Risk and Volatility

Regulus Therapeutics has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, ProMIS Neurosciences has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Summary

Regulus Therapeutics beats ProMIS Neurosciences on 7 of the 12 factors compared between the two stocks.

About Regulus Therapeutics

Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company, focuses on discovery and development of drugs that targets microRNAs to treat a range of diseases in the United States. Its product candidates include RGLS8429, an anti-miR next generation oligonucleotide targeting miR-17, which is in Phase 1b clinical trial for the treatment of autosomal dominant polycystic kidney disease. The company is also developing a pipeline of preclinical drug products for target organ-selective delivery strategies. Regulus Therapeutics Inc. was incorporated in 2007 and is headquartered in San Diego, California.

About ProMIS Neurosciences

ProMIS Neurosciences, Inc. discovers and develops antibody therapies and therapeutic vaccines neurodegenerative diseases and other misfolded protein diseases in Canada. The company's proprietary discovery platform comprises ProMIS and Collective Coordinates algorithms to predict novel targets known as disease specific epitopes on the molecular surface of misfolded proteins. Its lead product candidates include PMN310, a monoclonal antibody (mAb) for toxic oligomers in AD; PMN267, a TDP-43; and PMN442, a mAb targeting toxic a-syn oligomers and seeding fibrils. The company was formerly known as Amorfix Life Sciences Ltd. and changed its name to ProMIS Neurosciences, Inc. in July 2015. ProMIS Neurosciences, Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.