ImmunoGen (NASDAQ:IMGN) and Athersys (NASDAQ:ATHX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations and price targets for ImmunoGen and Athersys, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ImmunoGen | 0 | 3 | 4 | 0 | 2.57 |
| Athersys | 0 | 0 | 4 | 0 | 3.00 |
ImmunoGen currently has a consensus target price of $10.10, indicating a potential upside of 33.60%. Athersys has a consensus target price of $9.00, indicating a potential upside of 405.62%. Given Athersys' stronger consensus rating and higher possible upside, analysts plainly believe Athersys is more favorable than ImmunoGen.
Volatility & Risk
ImmunoGen has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Athersys has a beta of -1.54, indicating that its share price is 254% less volatile than the S&P 500.
Valuation & Earnings
This table compares ImmunoGen and Athersys' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ImmunoGen | $82.27 million | 18.35 | $-104,130,000.00 | ($0.70) | -10.80 |
| Athersys | $5.63 million | 68.05 | $-44,580,000.00 | ($0.29) | -6.14 |
Athersys has lower revenue, but higher earnings than ImmunoGen. ImmunoGen is trading at a lower price-to-earnings ratio than Athersys, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ImmunoGen and Athersys' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ImmunoGen | -77.65% | N/A | -26.98% |
| Athersys | N/A | -176.56% | -112.67% |
Institutional & Insider Ownership
73.0% of ImmunoGen shares are owned by institutional investors. Comparatively, 27.9% of Athersys shares are owned by institutional investors. 3.8% of ImmunoGen shares are owned by company insiders. Comparatively, 12.6% of Athersys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Athersys beats ImmunoGen on 8 of the 13 factors compared between the two stocks.
