Vericel (NASDAQ:VCEL) vs. Black Diamond Therapeutics (NASDAQ:BDTX) Financial Review

Vericel (NASDAQ:VCEL) and Black Diamond Therapeutics (NASDAQ:BDTX) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

95.5% of Black Diamond Therapeutics shares are held by institutional investors. 7.6% of Vericel shares are held by insiders. Comparatively, 9.3% of Black Diamond Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Vericel has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Black Diamond Therapeutics has a beta of 3.48, indicating that its share price is 248% more volatile than the S&P 500.

Profitability

This table compares Vericel and Black Diamond Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vericel	7.91%	6.91%	5.02%
Black Diamond Therapeutics	N/A	-32.10%	-25.21%

Valuation and Earnings

This table compares Vericel and Black Diamond Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vericel	$276.26 million	11.04	$16.52 million	$0.64	93.09
Black Diamond Therapeutics	$70.00 million	1.32	$22.37 million	($0.75)	-2.14

Black Diamond Therapeutics has lower revenue, but higher earnings than Vericel. Black Diamond Therapeutics is trading at a lower price-to-earnings ratio than Vericel, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vericel and Black Diamond Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vericel	0	2	5	0	2.71
Black Diamond Therapeutics	1	2	7	0	2.60

Vericel presently has a consensus price target of $62.00, indicating a potential upside of 4.07%. Black Diamond Therapeutics has a consensus price target of $11.00, indicating a potential upside of 585.36%. Given Black Diamond Therapeutics’ higher possible upside, analysts clearly believe Black Diamond Therapeutics is more favorable than Vericel.

Summary

Vericel beats Black Diamond Therapeutics on 8 of the 14 factors compared between the two stocks.

About Vericel

Vericel Corporation is a biopharmaceutical company focused on developing and commercializing cell therapies and other treatments for serious conditions. Based in Cambridge, Massachusetts, the company markets its products primarily in the United States. Its products include MACI, an implant made from a patient’s own cultured cartilage cells used to repair certain cartilage defects in the knee, and Epicel, a cultured skin graft used to treat patients with deep burns. Vericel also commercializes NexoBrid in the United States, an enzyme-based treatment for removing dead tissue from severe thermal burns.

About Black Diamond Therapeutics

Black Diamond Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing precision medicines for genetically defined cancers. The company uses its proprietary MasterKey platform to identify and develop small-molecule therapies designed to address oncogenic mutations across multiple tumor types, including alterations that may be difficult to target with conventional approaches. Black Diamond’s pipeline has included brain-penetrant therapies for cancers affecting the central nervous system.