Vericel (NASDAQ: PDLI) and PDL BioPharma (NASDAQ:PDLI) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Earnings and Valuation
This table compares Vericel and PDL BioPharma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vericel||$63.92 million||9.26||-$17.28 million||($0.50)||-27.70|
|PDL BioPharma||$320.06 million||1.14||$110.74 million||$0.63||4.00|
PDL BioPharma has higher revenue and earnings than Vericel. Vericel is trading at a lower price-to-earnings ratio than PDL BioPharma, indicating that it is currently the more affordable of the two stocks.
This table compares Vericel and PDL BioPharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Vericel and PDL BioPharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vericel presently has a consensus price target of $15.00, suggesting a potential upside of 8.30%. PDL BioPharma has a consensus price target of $2.50, suggesting a potential downside of 0.79%. Given Vericel’s stronger consensus rating and higher probable upside, analysts plainly believe Vericel is more favorable than PDL BioPharma.
Volatility and Risk
Vericel has a beta of 2.98, indicating that its stock price is 198% more volatile than the S&P 500. Comparatively, PDL BioPharma has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Institutional & Insider Ownership
76.5% of Vericel shares are held by institutional investors. Comparatively, 87.4% of PDL BioPharma shares are held by institutional investors. 4.7% of Vericel shares are held by company insiders. Comparatively, 2.3% of PDL BioPharma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, markets, and sells patient-specific expanded cellular therapies to repair and regenerate damaged tissues and organs. It markets autologous cell therapy products, including MACI, an autologous cellularized scaffold product for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; and Carticel, an autologous chondrocyte implant for the repair of symptomatic cartilage defects of the femoral condyle caused by acute or repetitive trauma in patients that have inadequate response to a prior arthroscopic or other surgical repair procedure. The company also markets Epicel, a permanent skin replacement humanitarian use device for the treatment of patients with deep-dermal or full-thickness burns. In addition, it develops ixmyelocel-T, a patient-specific multicellular therapy that has completed Phase IIb clinical trial for the treatment of advanced heart failure due to ischemic dilated cardiomyopathy. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was founded in 1989 and is headquartered in Cambridge, Massachusetts.
About PDL BioPharma
PDL BioPharma, Inc. acquires and manages companies, products, royalty agreements, and debt facilities in the biotechnology, pharmaceutical, and medical device industries in the United States, Europe, and internationally. The company operates in three segments: Income Generating Assets, Pharmaceutical, and Medical Devices. The Income Generating Assets segment consists of notes and other long-term receivables; royalty rights and hybrid notes/royalty receivables; equity investments in healthcare companies; and royalties from issued patents covering the humanization of antibodies, including Avastin, Herceptin, Xolair, Lucentis, Perjeta, Kadcyla, and Tysabri. The Pharmaceutical segment manufactures, markets, and sells prescription medicine products for the treatment of hypertension to wholesalers under the Tekturna and Tekturna HCT names in the United States, as well as under the Rasilez and Rasilez HCT names internationally. The Medical Devices segment manufactures and sells LENSAR laser systems for anterior capsulotomy, lens fragmentation, corneal and arcuate incisions to ophthalmic ambulatory surgical centers, specialty ophthalmic hospitals, and multi-specialty hospitals through a direct sales force. The company was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006. PDL BioPharma, Inc. was founded in 1986 and is headquartered in Incline Village, Nevada.
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