Financial Comparison: Valeritas (VLRX) versus Biostage (BSTG)

Valeritas (NASDAQ:VLRX) and Biostage (OTCMKTS:BSTG) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Valuation and Earnings

This table compares Valeritas and Biostage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valeritas $20.25 million 0.52 -$49.30 million ($8.29) -0.05
Biostage $80,000.00 201.99 -$11.91 million N/A N/A

Biostage has lower revenue, but higher earnings than Valeritas.

Risk & Volatility

Valeritas has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, Biostage has a beta of 2.61, suggesting that its share price is 161% more volatile than the S&P 500.

Profitability

This table compares Valeritas and Biostage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valeritas -193.79% -1,768.69% -102.96%
Biostage N/A -224.68% -138.88%

Analyst Recommendations

This is a summary of recent ratings for Valeritas and Biostage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valeritas 0 1 2 0 2.67
Biostage 0 0 0 0 N/A

Valeritas presently has a consensus target price of $2.75, suggesting a potential upside of 551.81%. Given Valeritas’ higher possible upside, analysts clearly believe Valeritas is more favorable than Biostage.

Insider & Institutional Ownership

7.4% of Valeritas shares are owned by institutional investors. Comparatively, 0.3% of Biostage shares are owned by institutional investors. 1.8% of Valeritas shares are owned by insiders. Comparatively, 4.3% of Biostage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Biostage beats Valeritas on 6 of the 11 factors compared between the two stocks.

Valeritas Company Profile

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States and China. It offers V-Go, a wearable insulin delivery device for basal-bolus therapy. The company also develops h-Patch, a controlled delivery technology platform; Mini-Ject technology for needle-free injection systems; and Micro-Trans technology for microneedle design, fabrication, and drug delivery. In addition, its products include V-Go Prefill, which is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go Link that is in the early stages of development for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors in the United States. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.

Biostage Company Profile

Biostage, Inc., a biotechnology company, engages in developing bioengineered organ implants based on its Cellframe technology. The company's Cellframe technology combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan organ implants. It is developing bioengineered organ implants, which addresses the damage of the esophagus, bronchus, and trachea due to cancer, infection, trauma, or congenital abnormalities. The company was formerly known as Harvard Apparatus Regenerative Technology, Inc. and changed its name to Biostage, Inc. in March 2016. Biostage, Inc. was founded in 2007 and is headquartered in Holliston, Massachusetts.

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