Vermillion (NASDAQ: VRML) and Lion Biotechnologies (NASDAQ:IOVA) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitabiliy, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Insider & Institutional Ownership

36.5% of Vermillion shares are owned by institutional investors. Comparatively, 77.9% of Lion Biotechnologies shares are owned by institutional investors. 3.7% of Vermillion shares are owned by company insiders. Comparatively, 13.2% of Lion Biotechnologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Vermillion and Lion Biotechnologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vermillion -443.29% -195.68% -118.62%
Lion Biotechnologies N/A -10.07% -9.81%

Analyst Ratings

This is a summary of current ratings and target prices for Vermillion and Lion Biotechnologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vermillion 0 0 1 0 3.00
Lion Biotechnologies 0 0 8 0 3.00

Vermillion presently has a consensus target price of $2.00, suggesting a potential upside of 25.79%. Lion Biotechnologies has a consensus target price of $15.17, suggesting a potential upside of 142.67%. Given Lion Biotechnologies’ higher possible upside, analysts plainly believe Lion Biotechnologies is more favorable than Vermillion.

Valuation & Earnings

This table compares Vermillion and Lion Biotechnologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vermillion $2.86 million 31.18 -$11.94 million N/A N/A
Lion Biotechnologies N/A N/A N/A ($1.96) -3.19

Lion Biotechnologies has higher revenue, but lower earnings than Vermillion.

Volatility & Risk

Vermillion has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500. Comparatively, Lion Biotechnologies has a beta of 4.5, meaning that its stock price is 350% more volatile than the S&P 500.

Summary

Lion Biotechnologies beats Vermillion on 8 of the 9 factors compared between the two stocks.

Vermillion Company Profile

Vermillion, Inc. is a diagnostic service and bio-analytic solutions provider. The Company is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease. It sells OVA1 risk of malignancy test for pelvic mass disease (OVA1). OVA1 is a blood test designed to, in addition to a physician’s clinical assessment of a woman with a pelvic mass, identify women who are at risk of having a malignant ovarian tumor prior to planned surgery. It developed OVA1 through pre-clinical studies in collaboration with various academic medical centers encompassing over 2,500 clinical samples. OVA1 is validated in a multi-center clinical trial encompassing approximately 30 sites reflective of the diverse nature of the clinical centers, at which ovarian adnexal masses are evaluated. Its ASPiRA LABS is a laboratory that provides diagnostic services using a biomarker-based diagnostic algorithm to inform clinical decision making and personalized treatment plans.

Lion Biotechnologies Company Profile

Iovance Biotherapeutics, Inc., formerly Lion Biotechnologies, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of cancer immunotherapy products designed to harness the power of a patient’s own immune system to eradicate cancer cells. The Company’s lead program is an adoptive cell therapy utilizing tumor-infiltrating lymphocytes, which are T cells derived from patients’ tumors, for the treatment of metastatic melanoma. As of December 31, 2016, it had an on-going Phase II clinical trial of its lead product candidate, LN-144, TIL for the treatment of metastatic melanoma. The Company is developing LN-145 to treat cervical and head and neck cancers. It is collaborating with the National Cancer Institute to evaluate unmodified TIL in other solid tumor indications, such as ocular melanoma, bladder, breast and lung cancer. It is collaborating with the NCI to evaluate TIL in combination with the checkpoint inhibitor, Keytruda.

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