Celcuity (NASDAQ:CELC) and Psychemedics (NASDAQ:PMD) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

15.2% of Celcuity shares are owned by institutional investors. Comparatively, 57.4% of Psychemedics shares are owned by institutional investors. 43.5% of Celcuity shares are owned by insiders. Comparatively, 8.6% of Psychemedics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Celcuity and Psychemedics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celcuity N/A N/A -$6.25 million ($0.78) -30.68
Psychemedics $39.70 million 2.26 $6.12 million N/A N/A

Psychemedics has higher revenue and earnings than Celcuity.

Dividends

Psychemedics pays an annual dividend of $0.72 per share and has a dividend yield of 4.4%. Celcuity does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Celcuity and Psychemedics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celcuity 0 0 2 0 3.00
Psychemedics 0 0 0 0 N/A

Celcuity presently has a consensus price target of $35.50, suggesting a potential upside of 48.35%. Given Celcuity’s higher probable upside, research analysts plainly believe Celcuity is more favorable than Psychemedics.

Profitability

This table compares Celcuity and Psychemedics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celcuity N/A -24.34% -23.67%
Psychemedics 14.24% 26.58% 18.41%

Volatility & Risk

Celcuity has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Psychemedics has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

Psychemedics beats Celcuity on 9 of the 12 factors compared between the two stocks.

About Celcuity

Celcuity Inc., a cellular analysis company, discovers cancer sub-types and commercializes diagnostic tests to enhance the response rates of cancer patients treated with targeted therapies in the United States. The company is developing CELx tests to diagnose two new sub-types of HER2-negative breast cancer. It is also developing CELx tests to diagnose 14 new potential cancer sub-types in breast, lung, colon, ovarian, kidney, bladder, and hematological cancers. The company was founded in 2012 and is headquartered in Minneapolis, Minnesota.

About Psychemedics

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States and internationally. The company's tests provide quantitative information that can indicate the approximate amount of drug ingested, as well as historical data, which can show a pattern of individual drug use over a longer period of time. It provides screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, PCP, amphetamines, synthetic cannabinoids, and benzodiazepines, as well as opiates, including heroin, hydrocodone, hydromorphone, oxycodone, oxymorphone, and codeine. The company offers its services to employers for applicant and employee testing; treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children's drug use; and Fortune 500 companies and small to mid-size corporations, as well as school and government entities. Psychemedics Corporation was founded in 1985 and is headquartered in Acton, Massachusetts.

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