Vericel Corporation (VCEL) & Argos Therapeutics (ARGS) Critical Review

Vericel Corporation (NASDAQ: VCEL) and Argos Therapeutics (NASDAQ:ARGS) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Risk and Volatility

Vericel Corporation has a beta of 3.07, suggesting that its share price is 207% more volatile than the S&P 500. Comparatively, Argos Therapeutics has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vericel Corporation and Argos Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vericel Corporation 0 0 3 0 3.00
Argos Therapeutics 0 3 0 0 2.00

Vericel Corporation currently has a consensus price target of $6.33, indicating a potential upside of 30.58%. Argos Therapeutics has a consensus price target of $4.13, indicating a potential upside of 2,134.23%. Given Argos Therapeutics’ higher probable upside, analysts clearly believe Argos Therapeutics is more favorable than Vericel Corporation.

Profitability

This table compares Vericel Corporation and Argos Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vericel Corporation -50.27% N/A -59.46%
Argos Therapeutics -12,391.15% -1,532.49% -92.03%

Insider and Institutional Ownership

33.8% of Vericel Corporation shares are held by institutional investors. Comparatively, 27.9% of Argos Therapeutics shares are held by institutional investors. 3.3% of Vericel Corporation shares are held by company insiders. Comparatively, 28.2% of Argos Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Vericel Corporation and Argos Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vericel Corporation $53.77 million 2.96 -$20.03 million ($1.10) -4.41
Argos Therapeutics $485,347.00 20.95 -$44.47 million ($1.48) -0.12

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

Summary

Vericel Corporation beats Argos Therapeutics on 10 of the 13 factors compared between the two stocks.

About Vericel Corporation

Vericel Corporation, formerly Aastrom Biosciences, Inc., is a commercial-stage biopharmaceutical company dedicated to the identification, development and commercialization of therapies that enable the body to repair and regenerate damaged tissues and organs to restore normal structure and function. The Company operates through the research, product development, manufacture and distribution of patient-specific, expanded cellular therapies for use in the treatment of specific diseases segment. Its autologous cell therapy products include Carticel (autologous cultured chondrocytes), which is an autologous chondrocyte implant for the treatment of cartilage defects in the knee, and Epicel (cultured epidermal autografts), which is a permanent skin replacement for the treatment of patients with deep-dermal or full-thickness burns. The Company is developing MACI, which is a third-generation autologous chondrocyte implant and ixmyelocel-T, which is a patient-specific multicellular therapy.

About Argos Therapeutics

Argos Therapeutics, Inc. (Argos) is an immuno-oncology company. The Company is focused on the development and commercialization of individualized immunotherapies for the treatment of cancer and infectious diseases based on its technology platform called Arcelis. The Company’s Arcelis technology platform utilizes biological components from a patient’s own cancer cells or virus to generate individualized immunotherapies. The Company is engaged in the development of AGS-003 for the treatment of metastatic renal cell carcinoma (mRCC), and other cancers. It is conducting a pivotal Phase III clinical trial of AGS-003 plus sunitinib or another targeted therapy for the treatment of newly diagnosed mRCC under a special protocol assessment (SPA). It is engaged in the development of AGS-004 for the treatment of Human Immunodeficiency Virus (HIV). It has conducted over three clinical trials of AGS-004, including a Phase IIb clinical trial, Phase IIa clinical trial and Phase I clinical trial.

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