Critical Contrast: Celldex Therapeutics (NASDAQ:CLDX) and Beam Therapeutics (NASDAQ:BEAM)

Beam Therapeutics (NASDAQ:BEAM) and Celldex Therapeutics (NASDAQ:CLDX) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Valuation & Earnings

This table compares Beam Therapeutics and Celldex Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beam Therapeutics	$139.74 million	20.13	-$79.99 million	($0.86)	-31.66
Celldex Therapeutics	$1.54 million	1,534.90	-$258.76 million	($4.35)	-6.92

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Beam Therapeutics and Celldex Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beam Therapeutics	1	2	8	1	2.75
Celldex Therapeutics	1	1	11	0	2.77

Beam Therapeutics currently has a consensus target price of $46.90, suggesting a potential upside of 72.24%. Celldex Therapeutics has a consensus target price of $63.08, suggesting a potential upside of 109.58%. Given Celldex Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Celldex Therapeutics is more favorable than Beam Therapeutics.

Risk & Volatility

Beam Therapeutics has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, Celldex Therapeutics has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Beam Therapeutics and Celldex Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beam Therapeutics	-54.75%	-30.71%	-24.07%
Celldex Therapeutics	N/A	-52.35%	-47.61%

Institutional & Insider Ownership

99.7% of Beam Therapeutics shares are held by institutional investors. 3.8% of Beam Therapeutics shares are held by insiders. Comparatively, 5.2% of Celldex Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Beam Therapeutics beats Celldex Therapeutics on 8 of the 15 factors compared between the two stocks.

About Beam Therapeutics

Beam Therapeutics Inc., a biotechnology company, engages in the development of precision genetic medicines for patients suffering from serious diseases in the United States. It develops BEAM-101 for the treatment of sickle cell disease or beta-thalassemia; and BEAM-302, a liver-targeting LNP formulation to treat severe alpha-1 antitrypsin deficiency; BEAM-201, an anti-CD7 CAR-T product candidate, which is in Phase 1/2 clinical trials for the treatment of refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma; and BEAM-301, a liver-targeting LNP formulation for the treatment of glycogen storage disease 1a. The company has research collaboration agreement with Pfizer Inc., focus on in vivo base editing programs for targets rare genetic diseases of the liver, muscle, and central nervous system; Apellis Pharmaceuticals to conduct preclinical research on target specific genes within the complement system in various organs, including the eye, liver, and brain; Verve Therapeutics, Inc., for cardiovascular disease treatments; Sana Biotechnology, Inc., to research, develop, and commercialize rights to CRISPR Cas12b for cell therapy programs; and Orbital Therapeutics design RNA for the prevention, treatment or diagnosis of human disease. Beam Therapeutics Inc. was incorporated in 2017 and is based in Cambridge, Massachusetts.

About Celldex Therapeutics

Celldex Therapeutics, Inc., a biopharmaceutical company, engages in developing therapeutic monoclonal and bispecific antibodies for the treatment of various diseases. Its drug candidates include antibody-based therapeutics to treat patients with inflammatory, allergic, autoimmune, and other devastating diseases. The company’s clinical development programs CDX-0159, a Phase II monoclonal antibody that binds the receptor tyrosine kinase KIT and inhibits its activity. It has research collaboration and license agreements with Yale University. The company was incorporated in 1983 and is headquartered in Hampton, New Jersey.