Transition Therapeutics (NASDAQ: TTHI) and Cesca Therapeutics (NASDAQ:KOOL) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Transition Therapeutics and Cesca Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transition Therapeutics 0 0 0 0 N/A
Cesca Therapeutics 0 1 0 0 2.00

Profitability

This table compares Transition Therapeutics and Cesca Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transition Therapeutics N/A -58.00% -47.29%
Cesca Therapeutics -225.90% -33.56% -23.23%

Insider and Institutional Ownership

2.4% of Cesca Therapeutics shares are held by institutional investors. 3.9% of Cesca Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Transition Therapeutics and Cesca Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Transition Therapeutics N/A N/A N/A ($0.52) -2.92
Cesca Therapeutics $14.00 million 2.49 -$6.73 million ($5.28) -0.67

Transition Therapeutics has higher revenue, but lower earnings than Cesca Therapeutics. Transition Therapeutics is trading at a lower price-to-earnings ratio than Cesca Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Transition Therapeutics has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Cesca Therapeutics has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500.

Summary

Cesca Therapeutics beats Transition Therapeutics on 5 of the 8 factors compared between the two stocks.

About Transition Therapeutics

Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.

About Cesca Therapeutics

Cesca Therapeutics Inc. is clinical-stage biotechnology company. The Company develops and markets integrated cellular therapies and delivery systems. The Company is engaged in developing and manufacturing of automated blood and bone marrow processing systems that enable the separation, processing and preservation of cell and tissue therapy products. The Company focuses on the business of research, development and commercialization of autologous cell-based therapeutics for use in the regenerative medicine industry. The Company’s therapeutic development initiatives focuses on the fields of cardiovascular medicine and orthopedic regeneration. The Company offers a range of products, such as SurgWerks System, CellWerks System, AutoXpress System (AXP), MarrowXpress System (MXP), BioArchive System, and manual bag sets for use in the processing and cryogenic storage of cord blood.

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