Critical Survey: Genocea Biosciences (GNCA) versus Vericel (VCEL)

Genocea Biosciences (NASDAQ:GNCA) and Vericel (NASDAQ:VCEL) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Genocea Biosciences and Vericel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genocea Biosciences N/A -584.35% -96.12%
Vericel -15.80% -17.39% -11.24%

Institutional and Insider Ownership

60.9% of Genocea Biosciences shares are held by institutional investors. Comparatively, 76.6% of Vericel shares are held by institutional investors. 3.0% of Genocea Biosciences shares are held by insiders. Comparatively, 3.3% of Vericel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Genocea Biosciences and Vericel’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genocea Biosciences $230,000.00 241.10 -$56.71 million ($1.98) -0.32
Vericel $63.92 million 11.65 -$17.28 million ($0.50) -34.36

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

Risk & Volatility

Genocea Biosciences has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Vericel has a beta of 3.36, suggesting that its share price is 236% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Genocea Biosciences and Vericel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genocea Biosciences 0 0 4 0 3.00
Vericel 0 0 5 0 3.00

Genocea Biosciences presently has a consensus target price of $4.00, suggesting a potential upside of 524.90%. Vericel has a consensus target price of $16.75, suggesting a potential downside of 2.50%. Given Genocea Biosciences’ higher probable upside, equities analysts plainly believe Genocea Biosciences is more favorable than Vericel.

Summary

Vericel beats Genocea Biosciences on 9 of the 13 factors compared between the two stocks.

Genocea Biosciences Company Profile

Genocea Biosciences, Inc., a biopharmaceutical company, discovers and develops novel cancer vaccines. The company uses its proprietary discovery platform, ATLAS, to recall a patient's pre-existing CD4+ and CD8+ T cell immune responses to tumor to identify antigens for inclusion in vaccines that are designed to act through T cell (or cellular) immune responses. Its lead immuno-oncology program is GEN-009, an adjuvanted neoantigen peptide vaccine candidate, which is in preclinical stage, designed to direct a patient's immune system to attack tumor. The company is also seeking partners to develop cancer vaccines targeting tumor-associated antigens and a vaccine targeting cancers caused by Epstein-Barr virus. Genocea Biosciences, Inc. was founded in 2006 and is headquartered in Cambridge, Massachusetts.

Vericel Company Profile

Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, markets, and sells patient-specific expanded cellular therapies to repair and regenerate damaged tissues and organs. It markets autologous cell therapy products, including MACI, an autologous cellularized scaffold product for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; and Carticel, an autologous chondrocyte implant for the repair of symptomatic cartilage defects of the femoral condyle caused by acute or repetitive trauma in patients that have inadequate response to a prior arthroscopic or other surgical repair procedure. The company also markets Epicel, a permanent skin replacement humanitarian use device for the treatment of patients with deep-dermal or full-thickness burns. In addition, it develops ixmyelocel-T, a patient-specific multicellular therapy that has completed Phase IIb clinical trial for the treatment of advanced heart failure due to ischemic dilated cardiomyopathy. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was founded in 1989 and is headquartered in Cambridge, Massachusetts.

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