Analyzing Cyclacel Pharmaceuticals (NASDAQ:BGMS) and Ferguson (NYSE:FERG)

Ferguson (NYSE:FERG) and Cyclacel Pharmaceuticals (NASDAQ:BGMS) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

82.0% of Ferguson shares are owned by institutional investors. Comparatively, 23.6% of Cyclacel Pharmaceuticals shares are owned by institutional investors. 0.2% of Ferguson shares are owned by company insiders. Comparatively, 23.7% of Cyclacel Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ferguson and Cyclacel Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferguson	6.82%	37.24%	12.31%
Cyclacel Pharmaceuticals	-118.27%	-31.60%	-27.72%

Valuation and Earnings

This table compares Ferguson and Cyclacel Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$31.32 billion	1.40	$1.86 billion	$8.51	26.67
Cyclacel Pharmaceuticals	$1.86 million	2.85	-$3.00 million	($3.64)	-0.26

Ferguson has higher revenue and earnings than Cyclacel Pharmaceuticals. Cyclacel Pharmaceuticals is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ferguson and Cyclacel Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	7	11	1	2.68
Cyclacel Pharmaceuticals	1	0	0	0	1.00

Ferguson currently has a consensus target price of $287.28, indicating a potential upside of 26.56%. Given Ferguson’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ferguson is more favorable than Cyclacel Pharmaceuticals.

Volatility & Risk

Ferguson has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Cyclacel Pharmaceuticals has a beta of -0.39, suggesting that its stock price is 139% less volatile than the S&P 500.

Summary

Ferguson beats Cyclacel Pharmaceuticals on 13 of the 15 factors compared between the two stocks.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.

About Cyclacel Pharmaceuticals

Cyclacel Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer and other proliferative diseases. The company’s development programs include fadraciclib, a cyclin dependent kinase Inhibitors (CDK) that is in Phase 1/2 clinical trial for the treatment of solid tumors, as well as in combination with venetoclax to treat relapsed or refractory chronic lymphocytic leukemia; and CYC140, a polo-like kinase inhibitor program, which is in Phase 1/2 clinical trial for the treatment of advanced leukemias and solid tumors. Its development programs also comprise Sapacitabine, a novel nucleoside analog that is orally available prodrug of CNDAC, which is in Phase 1/2 clinical trials to treat acute myeloid leukemia and myelodysplastic syndrome; and seliciclib, a CDK inhibitor that is in Phase 2 investigator-sponsored trials (IST) for Cushing’s disease, as well as in Phase 1/2 IST for the treatment for advanced rheumatoid arthritis. The company has a clinical collaboration agreement with the University of Texas MD Anderson Cancer Center to clinically evaluate the safety and efficacy of three cyclacel medicines in patients with hematological malignancies, including chronic lymphocytic leukemias, acute myeloid leukemias, myelodysplastic syndromes, and other advanced leukemias. Cyclacel Pharmaceuticals, Inc. is headquartered in Berkeley Heights, New Jersey.