Vericel Corporation (NASDAQ: VCEL) and Peregrine Pharmaceuticals (NASDAQ:PPHM) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vericel Corporation and Peregrine Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vericel Corporation 0 0 3 0 3.00
Peregrine Pharmaceuticals 0 0 1 0 3.00

Vericel Corporation currently has a consensus price target of $6.33, indicating a potential upside of 47.29%. Peregrine Pharmaceuticals has a consensus price target of $10.00, indicating a potential upside of 134.19%. Given Peregrine Pharmaceuticals’ higher possible upside, analysts plainly believe Peregrine Pharmaceuticals is more favorable than Vericel Corporation.

Earnings & Valuation

This table compares Vericel Corporation and Peregrine Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vericel Corporation $53.77 million 2.62 -$20.03 million ($1.10) -3.91
Peregrine Pharmaceuticals $79.10 million 2.43 -$17.42 million ($0.64) -6.67

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.

Volatility and Risk

Vericel Corporation has a beta of 3.17, indicating that its share price is 217% more volatile than the S&P 500. Comparatively, Peregrine Pharmaceuticals has a beta of 2.56, indicating that its share price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

34.0% of Vericel Corporation shares are owned by institutional investors. 3.3% of Vericel Corporation shares are owned by insiders. Comparatively, 4.9% of Peregrine Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vericel Corporation and Peregrine Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vericel Corporation -50.27% N/A -59.46%
Peregrine Pharmaceuticals -23.15% -38.19% -16.66%

Summary

Peregrine Pharmaceuticals beats Vericel Corporation on 7 of the 12 factors compared between the two stocks.

About Vericel Corporation

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.

About Peregrine Pharmaceuticals

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.

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