Mesoblast (NASDAQ: MESO) and Senestech (NASDAQ:SNES) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider & Institutional Ownership

2.9% of Mesoblast shares are held by institutional investors. Comparatively, 22.0% of Senestech shares are held by institutional investors. 27.4% of Senestech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Mesoblast and Senestech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesoblast 0 2 4 0 2.67
Senestech 0 0 2 0 3.00

Mesoblast currently has a consensus target price of $14.25, suggesting a potential upside of 175.63%. Senestech has a consensus target price of $8.50, suggesting a potential upside of 936.59%. Given Senestech’s stronger consensus rating and higher possible upside, analysts plainly believe Senestech is more favorable than Mesoblast.

Valuation and Earnings

This table compares Mesoblast and Senestech’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesoblast $2.41 million 183.72 -$76.81 million ($0.78) -6.63
Senestech $320,000.00 40.46 -$10.79 million ($1.34) -0.61

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

Profitability

This table compares Mesoblast and Senestech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesoblast -2,006.86% -12.04% -9.60%
Senestech -14,473.40% -190.41% -150.12%

Summary

Mesoblast beats Senestech on 7 of the 12 factors compared between the two stocks.

Mesoblast Company Profile

Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.

Senestech Company Profile

SenesTech, Inc. is a United States-based biotechnology platform and research company. The Company is engaged in developing a technology for managing animal populations by fertility control. It offers ContraPest, a fertility control product candidate. ContraPest’s technology and approach targets the reproductive capabilities of both sexes. Using bait stations, ContraPest is dispensed in a palatable liquid formulation that promotes sustained consumption by rodent communities. Its formulation causes both female and male rats to become infertile once they have consumed the dose. The active ingredient in females accelerates the rate at which ovarian follicles (egg structures) are depleted. Once these cells are gone, the animal cannot reproduce. In males, there is a marked reduction in the ability to fertilize eggs and, often complete sterility. ContraPest is designed, formulated and dispensed for handlers and non-target species, such as wildlife and pets in a biodegradable product.

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