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Celularity (NASDAQ:CELU – Get Rating) and Kezar Life Sciences (NASDAQ:KZR – Get Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Risk & Volatility
Celularity has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Kezar Life Sciences has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.
Earnings and Valuation
This table compares Celularity and Kezar Life Sciences’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Celularity | $21.33 million | 26.91 | -$100.12 million | ($2.80) | -1.48 |
Kezar Life Sciences | N/A | N/A | -$54.63 million | ($1.04) | -9.81 |
Kezar Life Sciences has lower revenue, but higher earnings than Celularity. Kezar Life Sciences is trading at a lower price-to-earnings ratio than Celularity, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
12.1% of Celularity shares are held by institutional investors. Comparatively, 71.0% of Kezar Life Sciences shares are held by institutional investors. 38.1% of Celularity shares are held by insiders. Comparatively, 7.7% of Kezar Life Sciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Celularity and Kezar Life Sciences, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Celularity | 0 | 2 | 2 | 0 | 2.50 |
Kezar Life Sciences | 0 | 0 | 3 | 0 | 3.00 |
Celularity presently has a consensus target price of $9.67, indicating a potential upside of 132.93%. Kezar Life Sciences has a consensus target price of $19.67, indicating a potential upside of 92.81%. Given Celularity’s higher probable upside, equities analysts plainly believe Celularity is more favorable than Kezar Life Sciences.
Profitability
This table compares Celularity and Kezar Life Sciences’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Celularity | -330.93% | -136.80% | -22.86% |
Kezar Life Sciences | N/A | -33.99% | -31.15% |
Summary
Kezar Life Sciences beats Celularity on 7 of the 12 factors compared between the two stocks.
About Celularity (Get Rating)
Celularity Inc., a clinical-stage biotechnology company, develops off-the-shelf placental-derived allogeneic cell therapies for the treatment of cancer, immune, and infectious diseases. It operates through three segments: Cell Therapy, Degenerative Disease, and BioBanking. The company’s lead therapeutic programs include CYCART-19, a placental-derived CAR-T therapy, which is in Phase I clinical trial for the treatment of B-cell malignancies; CYNK-001, placental-derived unmodified natural killer (NK) cell that is in Phase I clinical trial to treat acute myeloid leukemia, as well as in Phase I/IIa clinical trial for the treatment of glioblastoma multiforme and COVID-19; CYNK-101, an allogeneic genetically modified NK cell, which is in Phase I clinical trial to treat HER2+ gastric and gastroesophageal cancers; APPL-001, a placenta-derived mesenchymal-like adherent stromal cell that is in a pre-clinical stage for the treatment of Crohn’s disease; and PDA-002, a placenta-derived mesenchymal-like adherent stromal cell, which is in pre-clinical stage for the treatment of facioscapulohumeral muscular dystrophy. It also sells and licenses products that are used in surgical and wound care markets, such as Biovance and Interfyl; collects stem cells from umbilical cords and placentas; and provides cells storage under the LifebankUSA brand. The company was incorporated in 2016 and is headquartered in Florham Park, New Jersey.
About Kezar Life Sciences (Get Rating)
Kezar Life Sciences, Inc., a clinical-stage biotechnology company, engages in the discovery and development of novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer in the United States. The company’s lead product candidate is KZR-616, a selective immunoproteasome inhibitor that is in Phase 2 clinical trials for various indications, including lupus nephritis, dermatomyositis, and polymyositis; and Phase 1b clinical trials in systemic lupus erythematosus and lupus nephritis. Its preclinical products include KZR-261, a novel first-in-class protein secretion inhibitor for the treatment of KZR-261; and KZR-TBD for the treatment of oncology and immunology. The company was incorporated in 2015 and is based in South San Francisco, California.
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