Celldex Therapeutics (NASDAQ:CLDX – Get Free Report) and Natera (NASDAQ:NTRA – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Risk & Volatility
Celldex Therapeutics has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Natera has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
Insider and Institutional Ownership
99.9% of Natera shares are held by institutional investors. 5.2% of Celldex Therapeutics shares are held by company insiders. Comparatively, 5.0% of Natera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Celldex Therapeutics | 1 | 1 | 10 | 1 | 2.85 |
| Natera | 1 | 4 | 15 | 2 | 2.82 |
Celldex Therapeutics currently has a consensus target price of $56.08, suggesting a potential upside of 41.34%. Natera has a consensus target price of $319.38, suggesting a potential downside of 2.68%. Given Celldex Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Celldex Therapeutics is more favorable than Natera.
Profitability
This table compares Celldex Therapeutics and Natera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Celldex Therapeutics | N/A | -52.35% | -47.61% |
| Natera | -7.11% | -11.38% | -7.87% |
Earnings and Valuation
This table compares Celldex Therapeutics and Natera”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Celldex Therapeutics | $1.54 million | 2,023.42 | -$258.76 million | ($4.35) | -9.12 |
| Natera | $2.31 billion | 20.51 | -$208.16 million | ($1.36) | -241.31 |
Natera has higher revenue and earnings than Celldex Therapeutics. Natera is trading at a lower price-to-earnings ratio than Celldex Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Natera beats Celldex Therapeutics on 9 of the 15 factors compared between the two stocks.
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.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.
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