Prelude Therapeutics (NASDAQ:PRLD) vs. Larimar Therapeutics (NASDAQ:LRMR) Critical Contrast

Larimar Therapeutics (NASDAQ:LRMR) and Prelude Therapeutics (NASDAQ:PRLD) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings and Valuation

This table compares Larimar Therapeutics and Prelude Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Larimar Therapeutics	N/A	N/A	-$36.95 million	($1.15)	-1.98
Prelude Therapeutics	$7.00 million	5.67	-$121.83 million	($1.69)	-0.43

Larimar Therapeutics has higher earnings, but lower revenue than Prelude Therapeutics. Larimar Therapeutics is trading at a lower price-to-earnings ratio than Prelude Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Larimar Therapeutics has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Prelude Therapeutics has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

91.9% of Larimar Therapeutics shares are owned by institutional investors. Comparatively, 79.7% of Prelude Therapeutics shares are owned by institutional investors. 3.5% of Larimar Therapeutics shares are owned by insiders. Comparatively, 62.8% of Prelude Therapeutics 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 Larimar Therapeutics and Prelude Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Larimar Therapeutics	N/A	-35.87%	-32.37%
Prelude Therapeutics	N/A	-66.89%	-55.59%

Analyst Ratings

This is a breakdown of current ratings and target prices for Larimar Therapeutics and Prelude Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Larimar Therapeutics	0	0	10	1	3.09
Prelude Therapeutics	1	0	2	0	2.33

Larimar Therapeutics currently has a consensus target price of $20.13, indicating a potential upside of 782.68%. Prelude Therapeutics has a consensus target price of $4.00, indicating a potential upside of 455.56%. Given Larimar Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Larimar Therapeutics is more favorable than Prelude Therapeutics.

Summary

Larimar Therapeutics beats Prelude Therapeutics on 9 of the 13 factors compared between the two stocks.

About Larimar Therapeutics

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.

About Prelude Therapeutics

Prelude Therapeutics Incorporated, a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT1419, a myeloid cell leukemia-1 inhibitor, which is in Phase 1 clinical trial for the treatment of selected relapsed/refractory myeloid or B-cell malignancies; PRT2527, a cyclin-dependent kinase, which is in Phase 1 clinical trial for the treatment of advanced solid tumors; PRT3645, a cyclin-dependent kinase 4/6 inhibitor, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.