Contrasting Celldex Therapeutics (NASDAQ:CLDX) & Seres Therapeutics (NASDAQ:MCRB)
by Tristan Rich · The Markets DailyCelldex Therapeutics (NASDAQ:CLDX – Get Free Report) and Seres Therapeutics (NASDAQ:MCRB – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Volatility and Risk
Celldex Therapeutics has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Seres Therapeutics has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.
Valuation & Earnings
This table compares Celldex Therapeutics and Seres Therapeutics”s gross 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 | 1,881.66 | -$258.76 million | ($4.35) | -8.48 |
| Seres Therapeutics | $790,000.00 | 63.73 | $5.70 million | ($2.43) | -2.06 |
Seres Therapeutics has lower revenue, but higher earnings than Celldex Therapeutics. Celldex Therapeutics is trading at a lower price-to-earnings ratio than Seres Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Celldex Therapeutics and Seres Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Celldex Therapeutics | 1 | 1 | 10 | 1 | 2.85 |
| Seres Therapeutics | 1 | 1 | 2 | 0 | 2.25 |
Celldex Therapeutics currently has a consensus target price of $56.42, suggesting a potential upside of 52.89%. Seres Therapeutics has a consensus target price of $17.00, suggesting a potential upside of 239.32%. Given Seres Therapeutics’ higher possible upside, analysts clearly believe Seres Therapeutics is more favorable than Celldex Therapeutics.
Profitability
This table compares Celldex Therapeutics and Seres Therapeutics’ 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% |
| Seres Therapeutics | -1,192.94% | -114.82% | -34.15% |
Institutional and Insider Ownership
59.3% of Seres Therapeutics shares are held by institutional investors. 5.2% of Celldex Therapeutics shares are held by company insiders. Comparatively, 5.2% of Seres Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Celldex Therapeutics beats Seres Therapeutics on 8 of the 14 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 Seres Therapeutics
Seres Therapeutics, Inc., a microbiome therapeutics company, develop microbiome therapeutics to treat the modulation of the colonic microbiome. It develops a novel class of biological drugs that are designed to treat by modulating the microbiome to restore health by repairing the function of a disrupted microbiome to a non-disease state. The company’s lead product candidate is VOWST, an oral microbiome therapeutic that has completed Phase III clinical trial for the treatment of recurrent Clostridioides difficile infection. Its product pipeline also includes SER-155, an investigational oral fermented microbiome therapeutic which is in Phase 1b clinical trials for the treatment of gastrointestinal infections, bacteremia, and graft versus host disease in immunocompromised patients including patients receiving allogeneic hematopoietic stem cell transplantation. In addition, the company engages in the development of SER-287 which is in Phase 2b and SER-301 that is in Phase 1b to treat ulcerative colitis. Further, it has license Agreement with NHSc Rx License GmbH for the therapeutic products based on the microbiome technology, which includes VOWST product candidate, which is developed for the treatment of CDI and recurrent CDI; and collaboration license agreement with Société des Produits Nestlé S.A. (Nestlé) for the development and commercialization of certain product candidates for the treatment and management of CDI and inflammatory bowel disease including UC and Crohn’s disease. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.