Kamada (KMDA) & Cesca Therapeutics (KOOL) Critical Analysis

Kamada (NASDAQ: KMDA) and Cesca Therapeutics (NASDAQ:KOOL) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

6.3% of Kamada shares are owned by institutional investors. Comparatively, 3.0% of Cesca Therapeutics shares are owned by institutional investors. 3.9% of Cesca Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Kamada and Cesca Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kamada $77.49 million 2.73 -$6.73 million ($0.04) -131.22
Cesca Therapeutics $14.52 million 2.16 -$29.09 million ($0.81) -3.89

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

Analyst Ratings

This is a summary of current recommendations for Kamada and Cesca Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kamada 0 0 2 0 3.00
Cesca Therapeutics 0 1 0 0 2.00

Kamada currently has a consensus target price of $8.50, indicating a potential upside of 61.90%. Given Kamada’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kamada is more favorable than Cesca Therapeutics.

Profitability

This table compares Kamada and Cesca Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kamada -1.27% -1.64% -1.14%
Cesca Therapeutics -65.09% -28.32% -18.90%

Risk and Volatility

Kamada has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Cesca Therapeutics has a beta of -0.87, indicating that its stock price is 187% less volatile than the S&P 500.

Summary

Kamada beats Cesca Therapeutics on 12 of the 14 factors compared between the two stocks.

About Kamada

Kamada Ltd. is an Israel-based biopharmaceutical company, which develops, produces and markets therapeutics, based on chromatographic purification technology. It offers bio-therapeutics for human use, such as specialty proteins, specific immunoglobulins, and other prescription medicines. The Company’s product line includes intravenous AAT for chronic replacement therapy in individuals with congenital alpha-1 antitrypsin deficiency; KamRAB for prophylaxis of rabies infection; KamRho-D IM for prophylaxis of Rh hemolytic disease of the newborn; KamRho-D IV for treatment of immune thrombocytopenic purpura; and IVIG, a replacement therapy in primary and secondary immune therapy. Its product line also comprises Protosol to reduce blood loss in patients undergoing cardiac surgery; Heparin sodium injection for coagulation inhibition and prophylaxis of thromboembolic diseases and Heparin Lock Flush to maintain potency of intravenous injection device among other.

About Cesca Therapeutics

Cesca Therapeutics Inc. is clinical-stage biotechnology company. The Company develops and markets integrated cellular therapies and delivery systems. The Company is engaged in developing and manufacturing of automated blood and bone marrow processing systems that enable the separation, processing and preservation of cell and tissue therapy products. The Company focuses on the business of research, development and commercialization of autologous cell-based therapeutics for use in the regenerative medicine industry. The Company’s therapeutic development initiatives focuses on the fields of cardiovascular medicine and orthopedic regeneration. The Company offers a range of products, such as SurgWerks System, CellWerks System, AutoXpress System (AXP), MarrowXpress System (MXP), BioArchive System, and manual bag sets for use in the processing and cryogenic storage of cord blood.

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