Financial Comparison: Histogenics (HSGX) versus Catalent (CTLT)

Histogenics (NASDAQ: HSGX) and Catalent (NYSE:CTLT) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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This table compares Histogenics and Catalent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Histogenics N/A -658.91% -106.38%
Catalent 3.03% 23.85% 5.46%

Volatility and Risk

Histogenics has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Catalent has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Histogenics and Catalent, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Histogenics 0 0 2 0 3.00
Catalent 0 4 7 0 2.64

Histogenics presently has a consensus target price of $4.00, indicating a potential upside of 37.46%. Catalent has a consensus target price of $45.33, indicating a potential upside of 7.02%. Given Histogenics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Histogenics is more favorable than Catalent.

Institutional and Insider Ownership

50.5% of Histogenics shares are held by institutional investors. Comparatively, 99.9% of Catalent shares are held by institutional investors. 23.8% of Histogenics shares are held by insiders. Comparatively, 1.7% of Catalent shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Histogenics and Catalent’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Histogenics N/A N/A -$16.20 million ($1.38) -2.11
Catalent $2.08 billion 2.72 $109.80 million $0.57 74.32

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.

Summary

Catalent beats Histogenics on 9 of the 13 factors compared between the two stocks.

Histogenics Company Profile

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.

Catalent Company Profile

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its segments include Softgel Technologies, Drug Delivery Solutions and Clinical Supply Services. The Softgel Technologies segment is engaged in the formulation, development and manufacturing of prescription and consumer health soft capsules or softgels. The Drug Delivery Solutions segment is engaged in the formulation, development and manufacturing of prescription and consumer and animal health products; blow-fill seal unit dose manufacturing; biologic cell line development; analytical and bioanalytical development, and testing services. The Clinical Supply Services segment is engaged in manufacturing, packaging, labeling, storage, distribution and inventory management for clinical trials of drugs and biologics for patient kits; FastChain clinical supply service; clinical e-solutions and informatics, and global comparator sourcing services.

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