Analyzing Rapid Micro Biosystems (NASDAQ:RPID) and BioLife Solutions (NASDAQ:BLFS)

BioLife Solutions (NASDAQ:BLFS) and Rapid Micro Biosystems (NASDAQ:RPID) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for BioLife Solutions and Rapid Micro Biosystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioLife Solutions	1	8	1	1	2.18
Rapid Micro Biosystems	1	0	2	0	2.33

BioLife Solutions presently has a consensus target price of $31.38, indicating a potential downside of 10.99%. Rapid Micro Biosystems has a consensus target price of $6.00, indicating a potential upside of 358.02%. Given Rapid Micro Biosystems’ stronger consensus rating and higher probable upside, analysts clearly believe Rapid Micro Biosystems is more favorable than BioLife Solutions.

Valuation and Earnings

This table compares BioLife Solutions and Rapid Micro Biosystems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioLife Solutions	$96.21 million	17.90	-$4.59 million	$1.16	30.39
Rapid Micro Biosystems	$33.59 million	1.96	-$47.12 million	($1.12)	-1.17

BioLife Solutions has higher revenue and earnings than Rapid Micro Biosystems. Rapid Micro Biosystems is trading at a lower price-to-earnings ratio than BioLife Solutions, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.2% of BioLife Solutions shares are held by institutional investors. Comparatively, 52.6% of Rapid Micro Biosystems shares are held by institutional investors. 2.2% of BioLife Solutions shares are held by insiders. Comparatively, 12.7% of Rapid Micro Biosystems shares are held 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 BioLife Solutions and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BioLife Solutions	53.29%	2.70%	2.49%
Rapid Micro Biosystems	-145.56%	-177.04%	-73.12%

Risk and Volatility

BioLife Solutions has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Rapid Micro Biosystems has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Summary

BioLife Solutions beats Rapid Micro Biosystems on 11 of the 15 factors compared between the two stocks.

About BioLife Solutions

BioLife Solutions, Inc. develops, manufactures, and markets bioproduction tools and services for the cell and gene therapy (CGT) industry in the United States, Europe, the Middle East, Africa, and internationally. The company’s products are used in the basic and applied research, and commercial manufacturing of biologic-based therapies. It offers proprietary biopreservation media products, including HypoThermosol FRS and CryoStor Freeze Media that are formulated to mitigate preservation-induced, delayed-onset cell damage and death; bioproduction tools, such as human platelet lysates for cell expansion and CellSeal closed system vials that are used in CGT; and the ThawSTAR line that comprises of a family of automated thawing devices for frozen cell and gene therapies packaged in cryovials and cryobags. The company also provides cryogenic freezer technology for controlled rate freezing and cryogenic storage of biologic materials; ultra-low temperature mechanical freezers; evo shipping containers that are cloud-connected passive storage and transport containers for temperature-sensitive biologics and pharmaceuticals; liquid nitrogen laboratory freezers, cryogenic equipment, and accessories; and biological and pharmaceutical storage and transport services. It markets and sells its products directly, as well as through third party distributors. The company was incorporated in 1987 and is headquartered in Bothell, Washington.

About Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.