Cerus Corporation (CERS) vs. Glaukos Corporation (GKOS) Critical Survey

Cerus Corporation (NASDAQ: CERS) and Glaukos Corporation (NYSE:GKOS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cerus Corporation and Glaukos Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerus Corporation 0 0 4 0 3.00
Glaukos Corporation 0 0 7 0 3.00

Cerus Corporation presently has a consensus target price of $7.25, indicating a potential upside of 175.67%. Glaukos Corporation has a consensus target price of $51.33, indicating a potential upside of 63.48%. Given Cerus Corporation’s higher possible upside, analysts plainly believe Cerus Corporation is more favorable than Glaukos Corporation.

Profitability

This table compares Cerus Corporation and Glaukos Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerus Corporation -164.39% -120.31% -65.38%
Glaukos Corporation -0.81% 3.52% 3.06%

Institutional & Insider Ownership

58.7% of Cerus Corporation shares are owned by institutional investors. 7.4% of Cerus Corporation shares are owned by insiders. Comparatively, 16.4% of Glaukos Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cerus Corporation and Glaukos Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cerus Corporation $36.83 million 7.79 -$61.75 million ($0.61) -4.31
Glaukos Corporation $139.94 million 7.73 $8.15 million ($0.05) -628.00

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

Volatility & Risk

Cerus Corporation has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Glaukos Corporation has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

Glaukos Corporation beats Cerus Corporation on 8 of the 12 factors compared between the two stocks.

About Cerus Corporation

Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.

About Glaukos Corporation

Glaukos Corporation is an ophthalmic medical technology company. The Company focuses on the development and commercialization of products and procedures for the treatment of glaucoma. It offers iStent, a micro-invasive glaucoma surgery (MIGS) device. The iStent is a micro-bypass stent inserted through the small corneal incision made during cataract surgery and placed into Schlemm’s canal, a circular channel in the eye that collects aqueous humor and delivers it back into the bloodstream. It is developing three additional pipeline products: the iStent Inject, the iStent Supra and iDose. The iStent Inject includes two stents pre-loaded in an auto-injection inserter. The iStent Supra is designed to access an alternative drainage space within the eye. iDose is a drug delivery system that is designed to be implanted in the eye to continuously deliver therapeutic levels of medication for extended periods of time to lower intraocular pressure in glaucoma patients.

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