Analyzing Catalent (CTLT) & Neuralstem (CUR)

Catalent (NYSE: CTLT) and Neuralstem (NASDAQ:CUR) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Catalent and Neuralstem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catalent 5.01% 23.97% 5.24%
Neuralstem -154,347.81% -148.94% -84.85%

Institutional and Insider Ownership

99.4% of Catalent shares are owned by institutional investors. Comparatively, 7.1% of Neuralstem shares are owned by institutional investors. 1.7% of Catalent shares are owned by company insiders. Comparatively, 19.3% of Neuralstem 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Catalent and Neuralstem, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catalent 0 2 6 0 2.75
Neuralstem 0 0 0 0 N/A

Catalent presently has a consensus price target of $44.00, suggesting a potential upside of 3.90%. Neuralstem has a consensus price target of $3.18, suggesting a potential upside of 66.49%. Given Neuralstem’s higher probable upside, analysts plainly believe Neuralstem is more favorable than Catalent.

Valuation and Earnings

This table compares Catalent and Neuralstem’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Catalent $2.08 billion 2.71 $109.80 million $0.87 48.68
Neuralstem $20,000.00 1,446.83 -$21.07 million ($1.66) -1.15

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

Volatility & Risk

Catalent has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Neuralstem has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Summary

Catalent beats Neuralstem on 9 of the 13 factors compared between the two stocks.

Catalent Company Profile

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its segments include Softgel Technologies, Drug Delivery Solutions and Clinical Supply Services. The Softgel Technologies segment is engaged in the formulation, development and manufacturing of prescription and consumer health soft capsules or softgels. The Drug Delivery Solutions segment is engaged in the formulation, development and manufacturing of prescription and consumer and animal health products; blow-fill seal unit dose manufacturing; biologic cell line development; analytical and bioanalytical development, and testing services. The Clinical Supply Services segment is engaged in manufacturing, packaging, labeling, storage, distribution and inventory management for clinical trials of drugs and biologics for patient kits; FastChain clinical supply service; clinical e-solutions and informatics, and global comparator sourcing services.

Neuralstem Company Profile

Neuralstem, Inc. (Neuralstem) is a clinical-stage biopharmaceutical company. The Company is engaged in research, development and commercialization of central nervous system therapies based on its human neuronal stem cells and its stem-cell derived small molecule compounds. The Company has approximately three assets: its NSI-189 small molecule program, its NSI-566 stem cell therapy program and its chemical entity screening platform. The Company’s technology allows the commercial-scale production of multiple types of central nervous system stem cells, which are under development for the treatment of central nervous system diseases and conditions. The Company is developing NSI-189 for the treatment of major depressive disorder (MDD) and other psychiatric and/or cognitive impairment indications associated with hippocampal atrophy. The Company’s NSI-566 is indicated for amyotrophic lateral sclerosis (ALS), chronic spinal cord injury and motor deficits due to ischemic stroke.

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