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

Profitability

This table compares Icon and Celator Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Icon 16.37% 28.42% 15.06%
Celator Pharmaceuticals N/A -75.03% -46.70%

Insider and Institutional Ownership

89.7% of Icon shares are owned by institutional investors. 44.0% of Icon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Icon and Celator Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Icon 0 2 7 1 2.90
Celator Pharmaceuticals 0 0 0 0 N/A

Icon presently has a consensus target price of $120.80, suggesting a potential upside of 7.91%. Given Icon’s higher probable upside, equities research analysts clearly believe Icon is more favorable than Celator Pharmaceuticals.

Valuation & Earnings

This table compares Icon and Celator Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Icon $1.67 billion 3.64 $262.17 million $5.15 21.74
Celator Pharmaceuticals N/A N/A N/A ($0.59) -51.25

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

Summary

Icon beats Celator Pharmaceuticals on 11 of the 11 factors compared between the two stocks.

Icon Company Profile

ICON public limited company is a contract research organization (CRO), which is engaged in providing outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company is engaged in the strategic development, management and analysis of programs that support the various stages of the clinical development process, from compound selection to Phase I-IV clinical studies. Its services include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. The Company’s information systems offerings include ICONIK, Firecrest, ADDPLAN, AptivAdvantage and Aptiv Insite. It conducts various laboratory tests on the patient’s blood, urine and other bodily fluids at appropriate intervals during the trial. The Company offers clinical development services, including investigator recruitment, patient registries, outcomes research, clinical data management, immunoassay development and others.

Celator Pharmaceuticals Company Profile

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.

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