Head-To-Head Contrast: ImmunoGen (IMGN) and Heron Therapeutics (HRTX)

ImmunoGen (NASDAQ: IMGN) and Heron Therapeutics (NASDAQ:HRTX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

67.6% of ImmunoGen shares are owned by institutional investors. 6.5% of ImmunoGen shares are owned by company insiders. Comparatively, 19.9% of Heron Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ImmunoGen and Heron Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ImmunoGen $83.41 million 7.04 -$69.45 million ($1.20) -5.46
Heron Therapeutics $13.42 million 61.32 -$174.14 million ($4.26) -3.57

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

Analyst Recommendations

This is a summary of current recommendations and price targets for ImmunoGen and Heron Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ImmunoGen 1 2 5 0 2.50
Heron Therapeutics 0 0 9 0 3.00

ImmunoGen presently has a consensus price target of $8.05, indicating a potential upside of 22.90%. Heron Therapeutics has a consensus price target of $31.43, indicating a potential upside of 106.77%. Given Heron Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Heron Therapeutics is more favorable than ImmunoGen.

Profitability

This table compares ImmunoGen and Heron Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ImmunoGen -117.80% N/A -52.58%
Heron Therapeutics N/A -451.80% -152.23%

Volatility & Risk

ImmunoGen has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500.

Summary

ImmunoGen beats Heron Therapeutics on 7 of the 13 factors compared between the two stocks.

About ImmunoGen

ImmunoGen, Inc. is a clinical-stage biotechnology company that develops targeted cancer therapeutics using its antibody-drug conjugate (ADC) technology. The Company is engaged in the discovery of monoclonal antibody-based anticancer therapeutics. An ADC with the Company’s technology comprises an antibody that binds to a target found on tumor cells conjugated to one of its anti-cancer agents as a payload to kill the tumor cell once the ADC has bound to its target. Its product candidates include Mirvetuximab soravtansine; IMGN779; IMGN632; IMGN529, and Coltuximab ravtansine. Its portfolio is led by Mirvetuximab soravtansine, a first-in-class ADC targeting folate-receptor alpha (Fra). Its FORWARD II consists of cohorts assessing Mirvetuximab soravtansine in combination with, in separate doublets, Avastin (bevacizumab), pegylated liposomal doxorubicin (PLD), and carboplatin. The Company has developed tubulin-acting maytansinoid payload agents, which include DM1 and DM4.

About Heron Therapeutics

Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company’s product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company’s SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.

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