Brainstorm Cell Therapeutics (NASDAQ:BCLI) and Applied Genetic Technologies (NASDAQ:AGTC) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

11.8% of Brainstorm Cell Therapeutics shares are owned by institutional investors. Comparatively, 48.5% of Applied Genetic Technologies shares are owned by institutional investors. 24.7% of Brainstorm Cell Therapeutics shares are owned by insiders. Comparatively, 5.6% of Applied Genetic Technologies 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 Brainstorm Cell Therapeutics and Applied Genetic Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brainstorm Cell Therapeutics N/A -108.26% -56.53%
Applied Genetic Technologies -88.06% -19.77% -16.57%

Risk and Volatility

Brainstorm Cell Therapeutics has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Applied Genetic Technologies has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Earnings and Valuation

This table compares Brainstorm Cell Therapeutics and Applied Genetic Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brainstorm Cell Therapeutics N/A N/A -$4.95 million ($0.26) -13.65
Applied Genetic Technologies $24.19 million 4.97 -$21.30 million ($1.18) -5.62

Brainstorm Cell Therapeutics has higher earnings, but lower revenue than Applied Genetic Technologies. Brainstorm Cell Therapeutics is trading at a lower price-to-earnings ratio than Applied Genetic Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brainstorm Cell Therapeutics and Applied Genetic Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brainstorm Cell Therapeutics 0 0 2 0 3.00
Applied Genetic Technologies 0 2 3 0 2.60

Brainstorm Cell Therapeutics currently has a consensus price target of $10.00, suggesting a potential upside of 181.69%. Applied Genetic Technologies has a consensus price target of $7.40, suggesting a potential upside of 11.61%. Given Brainstorm Cell Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brainstorm Cell Therapeutics is more favorable than Applied Genetic Technologies.

Summary

Applied Genetic Technologies beats Brainstorm Cell Therapeutics on 7 of the 13 factors compared between the two stocks.

About Brainstorm Cell Therapeutics

Brainstorm Cell Therapeutics Inc., a biotechnology company, engages in the development and commercialization of central nervous system (CNS) adult stem cell therapies designed to address the unmet medical needs of patients with debilitating neurodegenerative diseases. The company holds rights to develop and commercialize its NurOwn technology that utilizes a patient's own cells, which are engineered outside the body, to produce and secrete factors known to promote neuronal survival. It is developing NurOwn for various neurodegenerative diseases, including its lead indication, which is in Phase III clinical trial for the treatment of amyotrophic lateral sclerosis, as well as in preclinical trial for the treatment of multiple sclerosis, Parkinson's disease, Huntington's disease, and autism spectrum disorder. The company was formerly known as Golden Hand Resources Inc. and changed its name to Brainstorm Cell Therapeutics Inc. in November 2004 to reflect its new line of business in the development of novel cell therapies for neurodegenerative diseases. Brainstorm Cell Therapeutics Inc. was founded in 2000 and is headquartered in New York, New York.

About Applied Genetic Technologies

Applied Genetic Technologies Corporation, a clinical-stage biotechnology company, develops transformational genetic therapies for patients suffering from rare and debilitating diseases. The company's lead products consist of four ophthalmology development programs across three targets, including X-linked retinoschisis that is in Phase I/II clinical trials; X-linked retinitis pigmentosa, which is in Phase I/II clinical trials; and achromatopsia that is in Phase I/II clinical trials for the treatment of inherited retinal diseases, as well as a preclinical program in adrenoleukodystrophy, which is a disease of the central nervous system and otology. It has collaboration agreements with Biogen MA, Inc., 4D Molecular Therapeutics, Synpromics Limited, and Bionic Sight, LLC, as well as the University of Florida Research Foundation. The company was founded in 1999 and is headquartered in Alachua, Florida.

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