Natera (NASDAQ:NTRA – Get Free Report) and Celldex Therapeutics (NASDAQ:CLDX – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Natera and Celldex Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natera | 1 | 4 | 16 | 2 | 2.83 |
| Celldex Therapeutics | 1 | 1 | 10 | 1 | 2.85 |
Natera currently has a consensus price target of $330.83, indicating a potential upside of 0.58%. Celldex Therapeutics has a consensus price target of $56.42, indicating a potential upside of 52.89%. Given Celldex Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Celldex Therapeutics is more favorable than Natera.
Risk & Volatility
Institutional & Insider Ownership
99.9% of Natera shares are held by institutional investors. 5.0% of Natera shares are held by company insiders. Comparatively, 5.2% of Celldex Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Natera and Celldex Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natera | $2.31 billion | 20.56 | -$208.16 million | ($1.36) | -241.86 |
| Celldex Therapeutics | $158,000.00 | 18,340.23 | -$258.76 million | ($4.35) | -8.48 |
Natera has higher revenue and earnings than Celldex Therapeutics. Natera 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 Natera and Celldex Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natera | -7.11% | -11.38% | -7.87% |
| Celldex Therapeutics | N/A | -52.35% | -47.61% |
Summary
Natera beats Celldex Therapeutics on 9 of the 15 factors compared between the two stocks.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.
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.
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