Catalyst Biosciences (NASDAQ: CBIO) and Avid Bioservices (NASDAQ:CDMO) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
Catalyst Biosciences has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500. Comparatively, Avid Bioservices has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.
This table compares Catalyst Biosciences and Avid Bioservices’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Catalyst Biosciences||$1.02 million||291.89||-$21.56 million||($13.12)||-2.07|
|Avid Bioservices||$57.63 million||2.35||-$28.15 million||($0.70)||-3.49|
Catalyst Biosciences has higher earnings, but lower revenue than Avid Bioservices. Avid Bioservices is trading at a lower price-to-earnings ratio than Catalyst Biosciences, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Catalyst Biosciences and Avid Bioservices, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Catalyst Biosciences currently has a consensus price target of $45.00, suggesting a potential upside of 65.81%. Avid Bioservices has a consensus price target of $10.00, suggesting a potential upside of 309.84%. Given Avid Bioservices’ higher probable upside, analysts clearly believe Avid Bioservices is more favorable than Catalyst Biosciences.
This table compares Catalyst Biosciences and Avid Bioservices’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
26.5% of Catalyst Biosciences shares are owned by institutional investors. Comparatively, 14.7% of Avid Bioservices shares are owned by institutional investors. 5.0% of Catalyst Biosciences shares are owned by insiders. Comparatively, 2.5% of Avid Bioservices shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Catalyst Biosciences beats Avid Bioservices on 7 of the 13 factors compared between the two stocks.
About Catalyst Biosciences
Catalyst Biosciences, Inc., formerly Targacept, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on creating and developing medicines to address serious medical conditions. The Company focuses its product development efforts in the fields of hemostasis, including the treatment of hemophilia and surgical bleeding, and inflammation, including prevention of delayed graft function (DGF) in renal transplants and the treatment of dry age-related macular degeneration (dry AMD), a condition that can cause visual impairment or blindness. The Company’s advanced program is a coagulation Factor VIIa variant, CB 813d, that has completed a Phase I clinical trial in severe hemophilia A and B patients. In addition to its lead Factor VIIa program, it has approximately two other coagulation factors, a Factor IX variant, CB 2679d/ISU 304, that is in advanced preclinical development, and a Factor Xa variant that has reached the advanced lead preclinical-stage of development.
About Avid Bioservices
Avid Bioservices, Inc., formerly Peregrine Pharmaceuticals, Inc., is a biopharmaceutical company. The Company is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. The Company delivers pharmaceutical products through its contract manufacturing business and through licensing its development-stage immunotherapy products. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. Its services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The Company also provides a variety of process development activities, including cell line development and optimization.
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