Celator Pharmaceuticals (NASDAQ: CPXX) and PRA Health Sciences (NASDAQ:PRAH) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Institutional and Insider Ownership

98.5% of PRA Health Sciences shares are held by institutional investors. 2.1% of PRA Health Sciences 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.

Earnings and Valuation

This table compares Celator Pharmaceuticals and PRA Health Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celator Pharmaceuticals N/A N/A N/A ($0.59) -51.25
PRA Health Sciences $1.81 billion 2.83 $68.17 million $1.79 45.25

PRA Health Sciences has higher revenue and earnings than Celator Pharmaceuticals. Celator Pharmaceuticals is trading at a lower price-to-earnings ratio than PRA Health Sciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Celator Pharmaceuticals and PRA Health Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celator Pharmaceuticals N/A -75.03% -46.70%
PRA Health Sciences 5.64% 21.66% 7.02%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Celator Pharmaceuticals and PRA Health Sciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celator Pharmaceuticals 0 0 0 0 N/A
PRA Health Sciences 0 1 9 0 2.90

PRA Health Sciences has a consensus price target of $89.70, suggesting a potential upside of 10.74%. Given PRA Health Sciences’ higher possible upside, analysts plainly believe PRA Health Sciences is more favorable than Celator Pharmaceuticals.

Summary

PRA Health Sciences beats Celator Pharmaceuticals on 9 of the 9 factors compared between the two stocks.

About Celator Pharmaceuticals

Celator Pharmaceuticals, Inc. is an oncology-focused biopharmaceutical company. The Company is engaged in developing products to improve patient outcomes in cancer. The Company’s technology platform, CombiPlex, enables the design and evaluation of optimized combinations incorporating traditional chemotherapies, as well as molecularly targeted agents to deliver anti-cancer activity. The Company’s product, VYXEOS, a nano-scale liposomal formulation of cytarabine:daunorubicin, in Phase III clinical testing for the treatment of acute myeloid leukemia. The Company also conducted clinical development efforts on CPX-1, a nano-scale liposomal formulation of irinotecan:floxuridine for the treatment of colorectal cancer; and has a preclinical stage product candidate CPX-8, a hydrophobic docetaxel prodrug nanoparticle formulation. The Company operates in the United States and Canada.

About PRA Health Sciences

PRA Health Sciences, Inc. is a contract research organization. The Company provides outsourced clinical development services to the biotechnology and pharmaceutical industries. The Company offers therapeutic services in areas of pharmaceutical development, including oncology, central nervous system, inflammation and infectious diseases. Its services include data management, statistical analysis, clinical trial management, and regulatory and drug development consulting. It provides its clients with clinical development service offerings, which includes both traditional, project-based Phase I through Phase IV services, as well as embedded and functional outsourcing services. As of December 31, 2016, its clinical development platform included approximately 70 offices across North America, Europe, Asia, Latin America, South Africa, Australia and the Middle East. The Company’s service offerings include product registration, strategic solutions and early development services.

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