AbCellera Biologics (NASDAQ:ABCL – Get Free Report) and Cytokinetics (NASDAQ:CYTK – Get Free Report) are both mid-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
61.4% of AbCellera Biologics shares are held by institutional investors. 28.4% of AbCellera Biologics shares are held by company insiders. Comparatively, 2.6% of Cytokinetics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
AbCellera Biologics has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Cytokinetics has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for AbCellera Biologics and Cytokinetics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AbCellera Biologics | 1 | 1 | 6 | 2 | 2.90 |
| Cytokinetics | 1 | 1 | 19 | 0 | 2.86 |
AbCellera Biologics presently has a consensus target price of $15.78, indicating a potential upside of 32.81%. Cytokinetics has a consensus target price of $106.67, indicating a potential upside of 98.67%. Given Cytokinetics’ higher probable upside, analysts plainly believe Cytokinetics is more favorable than AbCellera Biologics.
Profitability
This table compares AbCellera Biologics and Cytokinetics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AbCellera Biologics | -248.83% | -17.49% | -12.36% |
| Cytokinetics | -686.63% | N/A | -48.26% |
Valuation and Earnings
This table compares AbCellera Biologics and Cytokinetics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AbCellera Biologics | $66.17 million | 55.05 | -$146.41 million | ($0.54) | -22.00 |
| Cytokinetics | $113.29 million | 58.97 | -$784.96 million | ($6.04) | -8.89 |
AbCellera Biologics has higher earnings, but lower revenue than Cytokinetics. AbCellera Biologics is trading at a lower price-to-earnings ratio than Cytokinetics, indicating that it is currently the more affordable of the two stocks.
Summary
AbCellera Biologics beats Cytokinetics on 9 of the 15 factors compared between the two stocks.
About AbCellera Biologics
AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.
About Cytokinetics
Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.
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