Financial Analysis: Mesoblast (MESO) versus Portola Pharmaceuticals (PTLA)
Mesoblast (NASDAQ: MESO) and Portola Pharmaceuticals (NASDAQ:PTLA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Institutional & Insider Ownership
2.9% of Mesoblast shares are held by institutional investors. Comparatively, 87.5% of Portola Pharmaceuticals shares are held by institutional investors. 5.5% of Portola Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Mesoblast and Portola Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mesoblast||$2.41 million||191.18||-$76.81 million||($0.78)||-6.90|
|Portola Pharmaceuticals||$35.50 million||90.49||-$269.04 million||($4.32)||-11.40|
Mesoblast has higher earnings, but lower revenue than Portola Pharmaceuticals. Portola Pharmaceuticals is trading at a lower price-to-earnings ratio than Mesoblast, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Mesoblast has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500. Comparatively, Portola Pharmaceuticals has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
This is a summary of current ratings for Mesoblast and Portola Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mesoblast presently has a consensus price target of $14.25, indicating a potential upside of 164.87%. Portola Pharmaceuticals has a consensus price target of $75.67, indicating a potential upside of 53.70%. Given Mesoblast’s higher possible upside, equities analysts clearly believe Mesoblast is more favorable than Portola Pharmaceuticals.
This table compares Mesoblast and Portola Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Mesoblast beats Portola Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
Mesoblast Company Profile
Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.
Portola Pharmaceuticals Company Profile
Portola Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics in the areas of thrombosis, other hematologic disorders and inflammation for patients having limited or no approved treatment options. The Company’s two lead programs, Betrixaban and Andexanet alfa, address unmet medical needs in the area of thrombosis, or blood clots. Its third product candidate is Cerdulatinib. The Company’s Syk is a mediator of immune response in various types of immune cells. The Company has a program of selective Syk inhibitors, one of which is partnered with Ora Inc. Betrixaban is an oral once-daily inhibitor of Factor Xa in development for extended duration venous thromboembolism (VTE) prophylaxis in acute medically ill patients. Andexanet alfa is an orphan drug, which is a recombinant protein designed to reverse anticoagulant activity in patients treated with an fXa inhibitor.
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