Financial Analysis: Jounce Therapeutics (NASDAQ:JNCE) versus Champions Oncology (NASDAQ:CSBR)

Jounce Therapeutics (NASDAQ:JNCE) and Champions Oncology (NASDAQ:CSBR) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Jounce Therapeutics and Champions Oncology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jounce Therapeutics 46.11% 28.10% 21.33%
Champions Oncology -0.58% -7.73% -1.33%

Valuation and Earnings

This table compares Jounce Therapeutics and Champions Oncology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jounce Therapeutics $147.87 million 1.28 $56.82 million $1.66 3.35
Champions Oncology $27.07 million 4.05 $130,000.00 $0.01 921.00

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Jounce Therapeutics and Champions Oncology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jounce Therapeutics 1 1 1 1 2.50
Champions Oncology 0 1 2 0 2.67

Jounce Therapeutics presently has a consensus target price of $9.50, suggesting a potential upside of 70.86%. Champions Oncology has a consensus target price of $10.13, suggesting a potential upside of 9.93%. Given Jounce Therapeutics’ higher possible upside, research analysts clearly believe Jounce Therapeutics is more favorable than Champions Oncology.

Insider & Institutional Ownership

75.8% of Jounce Therapeutics shares are owned by institutional investors. Comparatively, 54.4% of Champions Oncology shares are owned by institutional investors. 44.0% of Jounce Therapeutics shares are owned by company insiders. Comparatively, 44.3% of Champions Oncology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Jounce Therapeutics has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500. Comparatively, Champions Oncology has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Summary

Jounce Therapeutics beats Champions Oncology on 11 of the 15 factors compared between the two stocks.

Jounce Therapeutics Company Profile

Jounce Therapeutics, Inc., a clinical-stage immunotherapy company, develops therapies for the treatment of cancer. The company offers vopratelimab, a clinical-stage monoclonal antibody that binds to and activates the Inducible T cell CO-Stimulator, a protein on the surface of T cells found in various solid tumors, which is in Phase I/II clinical trial for the treatment of head and neck squamous cell cancer, non-small cell lung cancer, triple negative breast cancer, gastric cancer, and other tumor types identified through its translational science platform. It is also developing JTX-4014, a monoclonal antibody that is in Phase I clinical trial for combination therapy; and JTX-8064, a monoclonal antibody that binds to leukocyte immunoglobulin like receptor B2 that is in the IND-enabling phase. The company has a master research and collaboration agreement with Celgene Corporation focused on developing and commercializing biologic immunotherapies. Jounce Therapeutics, Inc. was incorporated in 2012 and is headquartered in Cambridge, Massachusetts.

Champions Oncology Company Profile

Champions Oncology, Inc. develops and sells technology solutions and products to personalize the development and use of oncology drugs in the United States. Its Tumorgraft Technology Platform is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The company, through its Tumorgraft Technology Platform, provides Personalized Oncology Solutions (POS) that assist physicians in developing personalized treatment options for cancer patients through tumor specific data obtained from drug panels and related personalized oncology services. The company also offers POS products, including personalized tumor boards that are designed to provide access to oncologists with expertise in particular tumor types; and provides access to gene sequencing that analyzes the genetic makeup of patient's tumor for the purpose of identifying potentially useful drugs. In addition, it offers Translational Oncology Solutions, including a preclinical Tumorgraft platform to pharmaceutical and biotechnology companies. Champions Oncology, Inc. markets its products through Internet, word of mouth, and sales force to patients and physicians. The company was formerly known as Champions Biotechnology, Inc. and changed its name to Champions Oncology, Inc. in April 2011 to reflect its new focus on developing technologies to personalize the development and use of oncology drugs. Champions Oncology, Inc. was incorporated in 1985 and is headquartered in Hackensack, New Jersey.

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