Financial Analysis: Merck KGaA (OTCMKTS:MKGAF) versus Ceapro (OTCMKTS:CRPOF)

Ceapro (OTCMKTS:CRPOF) and Merck KGaA (OTCMKTS:MKGAF) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

0.1% of Merck KGaA shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Ceapro has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Merck KGaA has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ceapro and Merck KGaA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceapro	$7.14 million	1.86	-$3.49 million	($0.06)	-2.83
Merck KGaA	$22.72 billion	0.95	$3.06 billion	$6.81	24.50

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

Profitability

This table compares Ceapro and Merck KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ceapro	-69.60%	-20.30%	-18.07%
Merck KGaA	12.60%	10.17%	5.74%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ceapro and Merck KGaA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceapro	0	0	0	0	N/A
Merck KGaA	0	0	0	1	4.00

Summary

Merck KGaA beats Ceapro on 9 of the 11 factors compared between the two stocks.

About Ceapro

Ceapro Inc., a biotechnology company, engages in the development and marketing of health and wellness products and technology relating to plant extracts in the United States, Germany, China, Canada, and internationally. The company is involved in the development of proprietary extraction technologies and the application of these technologies to the production, development, and commercialization of active ingredients, such as oat beta glucan and avenanthramides, which are derived from oats and other renewable plant resources for healthcare and cosmetic industries. It also offers natural active ingredients, including oat powder, oat oil, oat peptides, and lupin peptides to the personal care, cosmetic, medical, and animal health industries; anti-aging skincare products to the cosmeceutical industries; and veterinary therapeutic products, including an oat shampoo, an ear cleanser, and a dermal complex/conditioner. The company has a research collaboration with the Angiogenesis Foundation. The company was incorporated in 1997 and is headquartered in Edmonton, Canada.

About Merck KGaA

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.