Reviewing Kura Oncology (NASDAQ:KURA) and Immatics (NASDAQ:IMTX)
by Michael Walen · The Markets DailyImmatics (NASDAQ:IMTX – Get Free Report) and Kura Oncology (NASDAQ:KURA – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Immatics and Kura Oncology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Immatics | -495.71% | -47.41% | -39.45% |
| Kura Oncology | -384.30% | -207.18% | -45.17% |
Earnings & Valuation
This table compares Immatics and Kura Oncology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Immatics | $54.60 million | 19.25 | -$222.26 million | ($1.86) | -4.13 |
| Kura Oncology | $67.48 million | 13.02 | -$278.67 million | ($3.37) | -2.93 |
Immatics has higher earnings, but lower revenue than Kura Oncology. Immatics is trading at a lower price-to-earnings ratio than Kura Oncology, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.4% of Immatics shares are owned by institutional investors. 3.3% of Immatics shares are owned by insiders. Comparatively, 7.6% of Kura Oncology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Immatics and Kura Oncology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Immatics | 1 | 0 | 7 | 0 | 2.75 |
| Kura Oncology | 1 | 1 | 11 | 0 | 2.77 |
Immatics presently has a consensus price target of $19.67, suggesting a potential upside of 155.74%. Kura Oncology has a consensus price target of $25.35, suggesting a potential upside of 156.61%. Given Kura Oncology’s stronger consensus rating and higher probable upside, analysts clearly believe Kura Oncology is more favorable than Immatics.
Risk and Volatility
Immatics has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Summary
Immatics beats Kura Oncology on 7 of the 13 factors compared between the two stocks.
About Immatics
Immatics N.V., a clinical-stage biopharmaceutical company, focuses on the research and development of potential T cell redirecting immunotherapies for the treatment of cancer in the United States. The company is developing targeted immunotherapies with a focus on treating solid tumors through two distinct treatment modalities, such as TCR-engineered autologous or allogeneic adoptive cell therapies (ACT) and antibody-like TCR Bispecifics. Its products pipeline includes IMA203 that targets solid tumors, which is in Phase 1b clinical trial; IMA203CD8, a cell therapy product that is in Phase 1b clinical trial; IMA204 that targets tumor stroma, which is in preclinical stage; and IMA30x, an allogenic cellular therapy product candidate, which is in preclinical stage. The company also develops TCR Bispecifics products, including IMA401 and IMA402, which is in Phase 1a clinical trial. The company has a strategic collaboration agreement with MD Anderson Cancer Center to develop multiple T cell and TCR-based adoptive cellular therapies; Celgene Corporation to develop novel adoptive cell therapies targeting multiple cancers; and Genmab A/S to develop T cell engaging bispecific immunotherapies targeting multiple cancer indications. Immatics N.V. is headquartered in Tübingen, Germany.
About Kura Oncology
Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s pipeline consists of small molecule product candidates that target cancer. Its lead product candidates are ziftomenib, an orally bioavailable small molecule inhibitor of the menin-KMT2A interaction for the treatment of genetically defined subsets of acute leukemias, including acute myeloid leukemia and acute lymphoblastic leukemia; tipifarnib, an orally bioavailable farnesyl transferase inhibitor combination with alpelisib for patients with PIK3CA-dependent HNSCC; and KO-2806, a farnesyl transferase inhibitor for the treatment of solid tumors. It has a clinical collaboration with Novartis Pharma AG to evaluate the combination of tipifarnib and alpelisib in patients with head and neck squamous cell carcinoma whose tumors have HRAS overexpression and/or PIK3CA mutation and/or amplification. The company was founded in 2014 and is headquartered in San Diego, California.