Charles River Laboratories International (NYSE: CRL) and FibroGen (NASDAQ:FGEN) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
This table compares Charles River Laboratories International and FibroGen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Charles River Laboratories International||10.13%||27.02%||8.84%|
Earnings and Valuation
This table compares Charles River Laboratories International and FibroGen’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Charles River Laboratories International||$1.81 billion||3.00||$435.89 million||$3.81||29.94|
|FibroGen||$117.90 million||32.94||-$110.06 million||($1.92)||-28.41|
Charles River Laboratories International has higher revenue and earnings than FibroGen. FibroGen is trading at a lower price-to-earnings ratio than Charles River Laboratories International, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.1% of Charles River Laboratories International shares are held by institutional investors. Comparatively, 47.5% of FibroGen shares are held by institutional investors. 2.2% of Charles River Laboratories International shares are held by company insiders. Comparatively, 14.9% of FibroGen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Charles River Laboratories International and FibroGen, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Charles River Laboratories International||0||5||4||0||2.44|
Charles River Laboratories International currently has a consensus target price of $103.17, suggesting a potential downside of 9.56%. FibroGen has a consensus target price of $65.67, suggesting a potential upside of 20.38%. Given FibroGen’s stronger consensus rating and higher probable upside, analysts clearly believe FibroGen is more favorable than Charles River Laboratories International.
Volatility & Risk
Charles River Laboratories International has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, FibroGen has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
About Charles River Laboratories International
Charles River Laboratories International, Inc. is an early-stage contract research company. The Company is engaged in laboratory animal medicine and science (research model technologies) and develop a portfolio of discovery and safety assessment services, both good laboratory practice (GLP) and non-GLP, which supports its clients from target identification through non-clinical development. The Company operates in three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing). The RMS segment includes Research Models and Research Model Services. The DSA segment includes Discovery Services and Safety Assessment. The Manufacturing segment includes Microbial Solutions, Avian, Biologics and Contract Manufacturing. The Company also provides a suite of products and services to support the Company’s clients’ manufacturing activities.
FibroGen, Inc. is a science-based biopharmaceutical company discovering and developing a pipeline of first- in-class therapeutics. The Company is focused on fibrosis and hypoxia-inducible factor (HIF) biology and clinical development to advance innovative medicines for the treatment of anemia, fibrotic disease, and cancer. Roxadustat, the Company’s most advanced product candidate, is an oral small molecule inhibitor of HIF prolyl hydroxylase activity in Phase III clinical development for the treatment of anemia in chronic kidney disease (CKD), and is entering Phase III development for anemia in lower risk myelodysplastic syndromes (MDS). The Company has developed Pamrevlumab. Pamrevlumab is a proprietary therapeutic antibody to inhibit the activity of connective tissue growth factor (CTGF), a common factor in chronic fibrotic and proliferative disorders characterized by persistent and excessive scarring that can lead to organ dysfunction and failure.
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