Financial Survey: Vericel (NASDAQ:VCEL) versus ADMA Biologics (NASDAQ:ADMA)

ADMA Biologics (NASDAQ:ADMA) and Vericel (NASDAQ:VCEL) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

75.7% of ADMA Biologics shares are held by institutional investors. 3.7% of ADMA Biologics shares are held by company insiders. Comparatively, 5.2% of Vericel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares ADMA Biologics and Vericel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADMA Biologics	$258.21 million	19.56	-$28.24 million	$0.28	76.32
Vericel	$226.84 million	12.46	-$3.18 million	$0.06	954.33

Vericel has lower revenue, but higher earnings than ADMA Biologics. ADMA Biologics is trading at a lower price-to-earnings ratio than Vericel, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for ADMA Biologics and Vericel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADMA Biologics	0	0	3	1	3.25
Vericel	0	0	7	0	3.00

ADMA Biologics currently has a consensus price target of $21.25, indicating a potential downside of 0.56%. Vericel has a consensus price target of $58.14, indicating a potential upside of 1.54%. Given Vericel’s higher probable upside, analysts plainly believe Vericel is more favorable than ADMA Biologics.

Profitability

This table compares ADMA Biologics and Vericel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADMA Biologics	17.80%	53.20%	26.07%
Vericel	1.56%	1.48%	0.96%

Volatility & Risk

ADMA Biologics has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Vericel has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Summary

ADMA Biologics beats Vericel on 9 of the 15 factors compared between the two stocks.

About ADMA Biologics

ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. The company offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. It develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, drug wholesalers, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.

About Vericel

Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in North America. The company markets autologous cell therapy products comprising MACI, an autologous cultured chondrocytes on porcine collagen membrane for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns; and NexoBrid, a biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.