Fortress Biotech (NASDAQ: FBIO) and Vericel Corporation (NASDAQ:VCEL) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
This is a summary of recent ratings and recommmendations for Fortress Biotech and Vericel Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortress Biotech currently has a consensus target price of $10.60, suggesting a potential upside of 140.91%. Vericel Corporation has a consensus target price of $6.33, suggesting a potential upside of 27.95%. Given Fortress Biotech’s higher probable upside, research analysts plainly believe Fortress Biotech is more favorable than Vericel Corporation.
Insider & Institutional Ownership
12.0% of Fortress Biotech shares are held by institutional investors. Comparatively, 33.8% of Vericel Corporation shares are held by institutional investors. 31.5% of Fortress Biotech shares are held by company insiders. Comparatively, 3.3% of Vericel Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Fortress Biotech and Vericel Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fortress Biotech||$108.97 million||2.04||-$71.48 million||($1.48)||-2.97|
|Vericel Corporation||$53.77 million||3.02||-$20.03 million||($1.10)||-4.50|
Vericel Corporation has higher revenue, but lower earnings than Fortress Biotech. Vericel Corporation is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Fortress Biotech has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Vericel Corporation has a beta of 3.07, suggesting that its share price is 207% more volatile than the S&P 500.
This table compares Fortress Biotech and Vericel Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Vericel Corporation beats Fortress Biotech on 7 of the 12 factors compared between the two stocks.
Fortress Biotech Company Profile
Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.
Vericel Corporation Company Profile
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.
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