Histogenics (HSGX) & Emergent Biosolutions (EBS) Critical Survey

Histogenics (NASDAQ: HSGX) and Emergent Biosolutions (NYSE:EBS) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Earnings and Valuation

This table compares Histogenics and Emergent Biosolutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Histogenics N/A N/A -$16.20 million ($0.22) -11.59
Emergent Biosolutions $488.78 million 4.55 $51.77 million $1.60 28.14

Emergent Biosolutions has higher revenue and earnings than Histogenics. Histogenics is trading at a lower price-to-earnings ratio than Emergent Biosolutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Histogenics and Emergent Biosolutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Histogenics 0 0 2 0 3.00
Emergent Biosolutions 0 1 2 0 2.67

Histogenics presently has a consensus target price of $4.00, suggesting a potential upside of 56.86%. Emergent Biosolutions has a consensus target price of $50.33, suggesting a potential upside of 11.80%. Given Histogenics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Histogenics is more favorable than Emergent Biosolutions.

Insider and Institutional Ownership

44.1% of Histogenics shares are owned by institutional investors. Comparatively, 74.3% of Emergent Biosolutions shares are owned by institutional investors. 23.8% of Histogenics shares are owned by insiders. Comparatively, 16.5% of Emergent Biosolutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Histogenics and Emergent Biosolutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Histogenics N/A -658.91% -106.38%
Emergent Biosolutions 15.60% 15.20% 9.67%

Volatility and Risk

Histogenics has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

Emergent Biosolutions beats Histogenics on 8 of the 12 factors compared between the two stocks.

About Histogenics

Histogenics Corporation is a regenerative medicine company. The Company is focused on developing and commercializing products in the musculoskeletal segment of the marketplace. The Company’s product candidate, NeoCart utilizes various aspects of regenerative medicine platform to develop a tissue implant intended to treat tissue injury in the field of orthopedics, specifically cartilage damage in the knee. NeoCart is a cartilage-like implant created using a patient’s own cartilage cells through a series of tissue engineering processes. The patient’s cells are separated from a tissue biopsy specimen extracted from the patient and multiplied in its laboratory. The cells are then infused into its scaffold that provides structure for the developing implant. Before NeoCart is implanted in a patient, the cell- and scaffold construct undergoes a bioengineering process in the Company’s Tissue Engineering Processor (TEP). The Company has operations in the United States and Israel.

About Emergent Biosolutions

Emergent BioSolutions Inc. is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs). The PHTs operates through two categories: Chemical, Biological, Radiological and Nuclear, as well as explosive-related threats and emerging infectious diseases. It operates through four business units: Vaccines and Anti-infectives; Antibody Therapeutics; Devices, and Contract Manufacturing. Vaccines and Anti-infectives business unit consists of BioThrax, which is for the general use prophylaxis and post-exposure prophylaxis of anthrax disease. Devices business unit consists of marketed products, such as Reactive Skin Decontamination Lotion Kit (RSDL) and Trobigard (atropine sulfate, obidoxime chloride).

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