Champions Oncology (NASDAQ:CSBR) and Charles River Laboratories International (NYSE:CRL) Financial Analysis

Charles River Laboratories International (NYSE:CRL) and Champions Oncology (NASDAQ:CSBR) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Charles River Laboratories International and Champions Oncology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles River Laboratories International	1	3	12	0	2.69
Champions Oncology	1	0	0	0	1.00

Charles River Laboratories International currently has a consensus target price of $255.65, indicating a potential downside of 14.43%. Given Charles River Laboratories International’s stronger consensus rating and higher possible upside, research analysts clearly believe Charles River Laboratories International is more favorable than Champions Oncology.

Insider & Institutional Ownership

98.9% of Charles River Laboratories International shares are held by institutional investors. Comparatively, 41.3% of Champions Oncology shares are held by institutional investors. 1.3% of Charles River Laboratories International shares are held by insiders. Comparatively, 46.4% of Champions Oncology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Charles River Laboratories International has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Champions Oncology has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Charles River Laboratories International and Champions Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles River Laboratories International	-5.96%	15.75%	6.51%
Champions Oncology	-1.87%	-27.48%	-3.84%

Valuation & Earnings

This table compares Charles River Laboratories International and Champions Oncology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charles River Laboratories International	$4.02 billion	3.55	-$144.34 million	($4.85)	-61.60
Champions Oncology	$59.42 million	1.16	-$1.17 million	($0.08)	-62.04

Champions Oncology has lower revenue, but higher earnings than Charles River Laboratories International. Champions Oncology is trading at a lower price-to-earnings ratio than Charles River Laboratories International, indicating that it is currently the more affordable of the two stocks.

Summary

Charles River Laboratories International beats Champions Oncology on 10 of the 14 factors compared between the two stocks.

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.

About Champions Oncology

Champions Oncology, Inc. engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. The company was founded by James M. Martell and David Sidransky on June 4, 1985 and is headquartered in Hackensack, NJ.