Celldex Therapeutics (NASDAQ:CLDX) and Beam Therapeutics (NASDAQ:BEAM) Critical Survey

Celldex Therapeutics (NASDAQ:CLDX) and Beam Therapeutics (NASDAQ:BEAM) are both mid-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Institutional and Insider Ownership

99.7% of Beam Therapeutics shares are held by institutional investors. 5.2% of Celldex Therapeutics shares are held by insiders. Comparatively, 3.8% of Beam Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Celldex Therapeutics and Beam Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celldex Therapeutics	1	1	11	0	2.77
Beam Therapeutics	1	2	8	1	2.75

Celldex Therapeutics presently has a consensus price target of $63.08, suggesting a potential upside of 112.90%. Beam Therapeutics has a consensus price target of $46.40, suggesting a potential upside of 60.98%. Given Celldex Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Celldex Therapeutics is more favorable than Beam Therapeutics.

Valuation & Earnings

This table compares Celldex Therapeutics and Beam Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celldex Therapeutics	$1.54 million	1,510.94	-$258.76 million	($4.35)	-6.81
Beam Therapeutics	$139.74 million	21.31	-$79.99 million	($0.86)	-33.52

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

Profitability

This table compares Celldex Therapeutics and Beam Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celldex Therapeutics	N/A	-52.35%	-47.61%
Beam Therapeutics	-54.75%	-30.71%	-24.07%

Volatility and Risk

Celldex Therapeutics has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Beam Therapeutics has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500.

Summary

Beam Therapeutics beats Celldex Therapeutics on 8 of the 15 factors compared between the two stocks.

About Celldex Therapeutics

Celldex Therapeutics, Inc., a biopharmaceutical company, engages in developing therapeutic monoclonal and bispecific antibodies for the treatment of various diseases. Its drug candidates include antibody-based therapeutics to treat patients with inflammatory, allergic, autoimmune, and other devastating diseases. The company’s clinical development programs CDX-0159, a Phase II monoclonal antibody that binds the receptor tyrosine kinase KIT and inhibits its activity. It has research collaboration and license agreements with Yale University. The company was incorporated in 1983 and is headquartered in Hampton, New Jersey.

About Beam Therapeutics

Beam Therapeutics Inc., a biotechnology company, engages in the development of precision genetic medicines for patients suffering from serious diseases in the United States. It develops BEAM-101 for the treatment of sickle cell disease or beta-thalassemia; and BEAM-302, a liver-targeting LNP formulation to treat severe alpha-1 antitrypsin deficiency; BEAM-201, an anti-CD7 CAR-T product candidate, which is in Phase 1/2 clinical trials for the treatment of refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma; and BEAM-301, a liver-targeting LNP formulation for the treatment of glycogen storage disease 1a. The company has research collaboration agreement with Pfizer Inc., focus on in vivo base editing programs for targets rare genetic diseases of the liver, muscle, and central nervous system; Apellis Pharmaceuticals to conduct preclinical research on target specific genes within the complement system in various organs, including the eye, liver, and brain; Verve Therapeutics, Inc., for cardiovascular disease treatments; Sana Biotechnology, Inc., to research, develop, and commercialize rights to CRISPR Cas12b for cell therapy programs; and Orbital Therapeutics design RNA for the prevention, treatment or diagnosis of human disease. Beam Therapeutics Inc. was incorporated in 2017 and is based in Cambridge, Massachusetts.