Catalent (NYSE: CTLT) and Histogenics (NASDAQ:HSGX) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
This table compares Catalent and Histogenics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
99.9% of Catalent shares are held by institutional investors. Comparatively, 50.5% of Histogenics shares are held by institutional investors. 1.7% of Catalent shares are held by insiders. Comparatively, 23.8% of Histogenics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Catalent and Histogenics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Catalent||$2.08 billion||2.67||$109.80 million||$0.57||73.04|
Catalent has higher revenue and earnings than Histogenics. Histogenics is trading at a lower price-to-earnings ratio than Catalent, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Catalent and Histogenics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Catalent presently has a consensus price target of $45.33, indicating a potential upside of 8.90%. Histogenics has a consensus price target of $4.00, indicating a potential upside of 36.05%. Given Histogenics’ stronger consensus rating and higher possible upside, analysts clearly believe Histogenics is more favorable than Catalent.
Volatility & Risk
Catalent has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Histogenics has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.
Catalent beats Histogenics on 9 of the 13 factors compared between the two stocks.
Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide. It operates through three segments: Softgel Technologies, Drug Delivery Solutions, and Clinical Supply Services. The Softgel Technologies segment offers formulation, development, and manufacturing services for softgels, which are used in a range of customer products, such as prescription drugs, over-the-counter medications, dietary supplements, and unit-dose cosmetics. Its principal softgel technologies include traditional softgel capsules, as well as Vegicaps and OptiShell capsules. The Drug Delivery Solutions segment formulates, develops, and manufactures prescription, and consumer and animal health products using OptiMelt, OptiPact, OptiForm, and Zydis, as well as other proprietary and conventional drug delivery technologies, such as prefilled syringes; manufactures blow-fill seal unit dose consisting of ADVASEPT technology; develops biologic cell line, such as GPEx and SMARTag technologies; provides biologics; and offers analytical and bioanalytical development, and testing services. This segment also provides analytical chemical, and cell-based testing and scientific; stability testing; respiratory products formulation and manufacturing; micronization and particle engineering; regulatory consulting; and bioanalytical testing services. The Clinical Supply Services segment offers manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics clinical trials; FastChain demand-led clinical supply services; clinical e-solutions and informatics; and comparator sourcing services. The company serves pharmaceutical, biotechnology, and consumer health companies; and companies in other healthcare market segments, such as animal health and medical devices, as well as in cosmetics industries. Catalent, Inc. was founded in 2007 and is headquartered in Somerset, New Jersey.
Histogenics Corporation is a regenerative medicine company. The Company is focused on developing and commercializing products in the musculoskeletal segment of the marketplace. The Company’s product candidate, NeoCart utilizes various aspects of regenerative medicine platform to develop a tissue implant intended to treat tissue injury in the field of orthopedics, specifically cartilage damage in the knee. NeoCart is a cartilage-like implant created using a patient’s own cartilage cells through a series of tissue engineering processes. The patient’s cells are separated from a tissue biopsy specimen extracted from the patient and multiplied in its laboratory. The cells are then infused into its scaffold that provides structure for the developing implant. Before NeoCart is implanted in a patient, the cell- and scaffold construct undergoes a bioengineering process in the Company’s Tissue Engineering Processor (TEP). The Company has operations in the United States and Israel.
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