Critical Comparison: Natera (NTRA) and Celcuity (CELC)

Natera (NASDAQ:NTRA) and Celcuity (NASDAQ:CELC) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Natera and Celcuity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natera 0 1 6 0 2.86
Celcuity 0 0 2 0 3.00

Natera presently has a consensus price target of $29.00, indicating a potential upside of 70.89%. Celcuity has a consensus price target of $35.50, indicating a potential upside of 48.35%. Given Natera’s higher possible upside, analysts clearly believe Natera is more favorable than Celcuity.

Profitability

This table compares Natera and Celcuity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natera -58.00% -2,569.52% -60.02%
Celcuity N/A -24.34% -23.67%

Earnings & Valuation

This table compares Natera and Celcuity’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natera $210.94 million 4.97 -$136.31 million ($2.40) -7.07
Celcuity N/A N/A -$6.25 million ($0.78) -30.68

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

Volatility and Risk

Natera has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Celcuity has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Institutional & Insider Ownership

87.9% of Natera shares are owned by institutional investors. Comparatively, 15.2% of Celcuity shares are owned by institutional investors. 13.2% of Natera shares are owned by company insiders. Comparatively, 43.5% of Celcuity shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Celcuity beats Natera on 7 of the 13 factors compared between the two stocks.

About Natera

Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. It primarily offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases that could be passed on to the carrier's children; and Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora products of conception test to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother's blood and a blood sample from the alleged father. In addition, it offers Constellation, a cloud-based software product that allows laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics in order to validate and launch tests. The company offers products through its direct sales force, as well as through a network of approximately 70 laboratory and distribution partners in the United States and internationally. Natera, Inc. has collaboration partnership with Fox Chase Cancer Center to assess customized circulating tumor DNA assay for recurrence monitoring of kidney cancer; and clinical trial collaboration with Neon Therapeutics, Inc. to assess the treatment response to personal cancer vaccine. The company was formerly known as Gene Security Network, Inc. and changed its name to Natera, Inc. in 2012. Natera, Inc. was founded in 2003 and is headquartered in San Carlos, California.

About Celcuity

Celcuity Inc., a cellular analysis company, discovers cancer sub-types and commercializes diagnostic tests to enhance the response rates of cancer patients treated with targeted therapies in the United States. The company is developing CELx tests to diagnose two new sub-types of HER2-negative breast cancer. It is also developing CELx tests to diagnose 14 new potential cancer sub-types in breast, lung, colon, ovarian, kidney, bladder, and hematological cancers. The company was founded in 2012 and is headquartered in Minneapolis, Minnesota.

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