Peregrine Pharmaceuticals (NASDAQ: PPHM) and Vericel Corporation (NASDAQ:VCEL) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
This is a breakdown of current recommendations and price targets for Peregrine Pharmaceuticals and Vericel Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Peregrine Pharmaceuticals presently has a consensus target price of $10.00, suggesting a potential upside of 117.86%. Vericel Corporation has a consensus target price of $6.33, suggesting a potential upside of 39.19%. Given Peregrine Pharmaceuticals’ higher possible upside, analysts plainly believe Peregrine Pharmaceuticals is more favorable than Vericel Corporation.
This table compares Peregrine Pharmaceuticals and Vericel Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Peregrine Pharmaceuticals has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Vericel Corporation has a beta of 3.17, suggesting that its stock price is 217% more volatile than the S&P 500.
Valuation and Earnings
This table compares Peregrine Pharmaceuticals and Vericel Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Peregrine Pharmaceuticals||$79.10 million||2.62||-$17.42 million||($0.64)||-7.17|
|Vericel Corporation||$53.77 million||2.78||-$20.03 million||($1.10)||-4.14|
Peregrine Pharmaceuticals has higher revenue and earnings than Vericel Corporation. Peregrine Pharmaceuticals is trading at a lower price-to-earnings ratio than Vericel Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
34.0% of Vericel Corporation shares are owned by institutional investors. 4.9% of Peregrine Pharmaceuticals shares are owned by insiders. Comparatively, 3.3% of Vericel Corporation shares are owned by 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.
Peregrine Pharmaceuticals beats Vericel Corporation on 7 of the 12 factors compared between the two stocks.
Peregrine Pharmaceuticals Company Profile
Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.
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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