Head to Head Contrast: Prelude Therapeutics (NASDAQ:PRLD) & Dianthus Therapeutics (NASDAQ:DNTH)

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

Risk and Volatility

Dianthus Therapeutics has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Prelude Therapeutics has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dianthus Therapeutics	$6.24 million	112.07	-$43.56 million	($2.60)	-8.37
Prelude Therapeutics	$7.00 million	7.27	-$121.83 million	($1.69)	-0.53

Dianthus Therapeutics has higher earnings, but lower revenue than Prelude Therapeutics. Dianthus 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.

Insider & Institutional Ownership

47.5% of Dianthus Therapeutics shares are held by institutional investors. Comparatively, 79.7% of Prelude Therapeutics shares are held by institutional investors. 16.6% of Dianthus Therapeutics shares are held by insiders. Comparatively, 62.8% of Prelude Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Dianthus Therapeutics and Prelude Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dianthus Therapeutics	-1,250.32%	-21.68%	-20.88%
Prelude Therapeutics	N/A	-66.89%	-55.59%

Analyst Ratings

This is a summary of recent recommendations for Dianthus Therapeutics and Prelude Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dianthus Therapeutics	0	0	7	2	3.22
Prelude Therapeutics	1	0	2	0	2.33

Dianthus Therapeutics currently has a consensus price target of $54.33, indicating a potential upside of 149.81%. Prelude Therapeutics has a consensus price target of $4.00, indicating a potential upside of 344.00%. Given Prelude Therapeutics’ higher probable upside, analysts clearly believe Prelude Therapeutics is more favorable than Dianthus Therapeutics.

Summary

Dianthus Therapeutics beats Prelude Therapeutics on 8 of the 15 factors compared between the two stocks.

About Dianthus Therapeutics

Dianthus Therapeutics, Inc., a clinical-stage biotechnology company, develops complement therapeutics for patients with severe autoimmune and inflammatory diseases. It is developing DNTH103, a monoclonal antibody, which is in Phase 2 clinical trial, for the treatment of generalized myasthenia gravis, multifocal motor neuropathy, and chronic inflammatory demyelinating polyneuropathy. Dianthus Therapeutics, Inc. was founded in 2019 and is headquartered in New York, New York.

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.