Reviewing Black Diamond Therapeutics (NASDAQ:BDTX) and Celularity (NASDAQ:CELU)

Black Diamond Therapeutics (NASDAQ:BDTX) and Celularity (NASDAQ:CELU) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Black Diamond Therapeutics	N/A	-32.10%	-25.21%
Celularity	-374.87%	N/A	-64.45%

Insider & Institutional Ownership

95.5% of Black Diamond Therapeutics shares are held by institutional investors. Comparatively, 19.0% of Celularity shares are held by institutional investors. 9.3% of Black Diamond Therapeutics shares are held by insiders. Comparatively, 17.3% of Celularity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Black Diamond Therapeutics has a beta of 3.32, indicating that its share price is 232% more volatile than the S&P 500. Comparatively, Celularity has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Black Diamond Therapeutics and Celularity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Black Diamond Therapeutics	$70.00 million	1.43	$22.37 million	($0.75)	-2.32
Celularity	$26.55 million	1.63	-$91.72 million	($2.73)	-0.49

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Diamond Therapeutics	1	2	7	0	2.60
Celularity	1	0	0	0	1.00

Black Diamond Therapeutics presently has a consensus target price of $11.00, suggesting a potential upside of 532.18%. Given Black Diamond Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Black Diamond Therapeutics is more favorable than Celularity.

Summary

Black Diamond Therapeutics beats Celularity on 10 of the 13 factors compared between the two stocks.

About Black Diamond Therapeutics

Black Diamond Therapeutics, Inc., a clinical-stage oncology medicine company, focuses on the discovery and development of MasterKey therapies for patients with genetically defined tumors. The company's lead product candidate is BDTX-1535, a brain-penetrant epidermal growth factor receptor MasterKey inhibitor, which is in phase 2 clinical trial for the treatment of epidermal growth factor receptor mutant non-small cell lung cancer, as well as phase 1 clinical trial to treat glioblastoma. It is also developing BDTX-4933, a brain-penetrant RAF MasterKey inhibitor targeting KRAS, NRAS, and BRAF alterations in solid tumors that is in phase 1 clinical trial. In addition, the company is developing BDTX-4876, a MasterKey inhibitor of oncogenic FGFR2/3 mutations with selectivity versus FGFR1/4, which is in preclinical stage. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.

About Celularity

Celularity Inc., a clinical-stage biotechnology company, develops off-the-shelf placental-derived allogeneic cell therapies for the treatment of cancer, immune, and infectious diseases. It operates through three segments: Cell Therapy, Degenerative Disease, and BioBanking. The company's lead therapeutic programs include CYCART-19, an allogeneic CAR-T cell for the treatment of non-Hodkin's lymphoma (NHL) and mantle cell lymphoma (MCL); CYNK-001, an allogeneic unmodified natural killer cell that is in Phase I/II clinical trial for the treatment of acute myeloid leukemia (AML); and APPL-001, a genetically modified placental-derived mesenchymal-like adherent stromal cell for the treatment of Crohn's disease. It is also developing CYCART-201 for the treatment of NHL and MCL, and human epidermal growth factor receptor 2 positive cancers; CYNK-301, a next generation chimeric antigen receptor-natural killer (CAR-NK) for treating relapse refractory AML; CYNK-302, a CAR-NK to treat non-small cell lung cancer; and pExo-001, a human postpartum placenta derived exosome product for the treatment of osteoarthritis. It also produces, sells, and licenses products that are used in surgical and wound care markets, such as Biovance, Biovance 3L, Interfyl, and Centaflex; and collects and stores stem cells from umbilical cords and placentas under the LifebankUSA brand. The company has licensing agreement with Sorrento Therapeutics, Inc. for the development and commercialization of licensed CD19 CAR-T products; and research collaboration services agreement with Regeneron Pharmaceuticals, Inc. to support the research of allogeneic cell therapy candidates. The company was founded in 1998 and is based in Florham Park, New Jersey.