Reviewing Upstream Bio (NASDAQ:UPB) & Celularity (NASDAQ:CELU)

Upstream Bio (NASDAQ:UPB) and Celularity (NASDAQ:CELU) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Volatility and Risk

Upstream Bio has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Celularity has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Upstream Bio and Celularity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upstream Bio	1	2	4	0	2.43
Celularity	1	0	0	0	1.00

Upstream Bio currently has a consensus target price of $26.67, indicating a potential upside of 693.65%. Given Upstream Bio’s stronger consensus rating and higher probable upside, research analysts clearly believe Upstream Bio is more favorable than Celularity.

Earnings & Valuation

This table compares Upstream Bio and Celularity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upstream Bio	$2.85 million	64.57	-$143.44 million	($2.90)	-1.16
Celularity	$26.55 million	0.93	-$91.72 million	($1.69)	-0.45

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

Institutional & Insider Ownership

19.0% of Celularity shares are owned by institutional investors. 16.5% of Upstream Bio shares are owned by company insiders. Comparatively, 17.3% of Celularity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Upstream Bio and Celularity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Upstream Bio	-4,955.67%	-48.40%	-46.57%
Celularity	-246.65%	N/A	-48.20%

Summary

Celularity beats Upstream Bio on 8 of the 14 factors compared between the two stocks.

About Upstream Bio

Upstream Bio, Inc. is a clinical-stage biotechnology company focused on developing therapies for inflammatory and immune-mediated diseases. The company’s research is centered on targeting pathways involved in type 2 inflammation, which contributes to conditions affecting the respiratory system and other tissues. Its lead product candidate is verekitug, an investigational, long-acting monoclonal antibody designed to block thymic stromal lymphopoietin (TSLP), an epithelial cytokine that plays a role in initiating and maintaining allergic and inflammatory responses.

About Celularity

Celularity, Inc. (NASDAQ: CELU) is a biotechnology company developing and commercializing therapies and biomaterial products derived from human placental tissue. Its work focuses on regenerative medicine and cellular therapy, including allogeneic, or donor-derived, cell products intended for applications in oncology, immune-mediated diseases, and tissue repair. The company’s research pipeline has included placenta-derived natural killer (NK) cell therapies, such as CYNK-001, an investigational product studied for certain blood cancers, and other cell-based programs designed to address cancer and inflammatory conditions.