Finch Therapeutics Group (NASDAQ:FNCH) versus Mesoblast (NASDAQ:MESO) Financial Contrast

Mesoblast (NASDAQ:MESO) and Finch Therapeutics Group (NASDAQ:FNCH) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Mesoblast and Finch Therapeutics Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesoblast	N/A	N/A	N/A
Finch Therapeutics Group	N/A	-69.14%	-26.92%

Analyst Recommendations

This is a summary of current recommendations and price targets for Mesoblast and Finch Therapeutics Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesoblast	0	1	2	1	3.00
Finch Therapeutics Group	0	0	0	0	0.00

Mesoblast currently has a consensus price target of $18.00, indicating a potential upside of 52.67%. Given Mesoblast’s stronger consensus rating and higher probable upside, analysts plainly believe Mesoblast is more favorable than Finch Therapeutics Group.

Earnings and Valuation

This table compares Mesoblast and Finch Therapeutics Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mesoblast	$5.67 million	265.70	-$87.96 million	N/A	N/A
Finch Therapeutics Group	$110,000.00	198.09	-$74.75 million	($8.82)	-1.54

Finch Therapeutics Group has lower revenue, but higher earnings than Mesoblast.

Institutional & Insider Ownership

1.4% of Mesoblast shares are held by institutional investors. Comparatively, 21.8% of Finch Therapeutics Group shares are held by institutional investors. 18.8% of Mesoblast shares are held by company insiders. Comparatively, 44.9% of Finch Therapeutics Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Mesoblast has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Finch Therapeutics Group has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Summary

Mesoblast beats Finch Therapeutics Group on 9 of the 12 factors compared between the two stocks.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.

About Finch Therapeutics Group

Finch Therapeutics Group, Inc., a clinical-stage microbiome therapeutics company, develops a novel class of orally administered biological drugs in the United States. The company develops FIN-211, a microbiome candidate designed to address the gastrointestinal and behavioral symptoms of autism spectrum disorder; and FIN-524 for the prevention, diagnosis, theragnosis or treatment of diseases in humans, including ulcerative colitis; FIN-525 for the treatment of Crohn's disease; and other microbiome product candidates. The company has collaboration and license agreements with Takeda Pharmaceutical Company Limited; and license agreements with Skysong Innovations LLC, OpenBiome, Arizona State University, and University of Minnesota. Finch Therapeutics Group, Inc. was incorporated in 2014 and is based in Boston, Massachusetts.