Mesoblast (MESO) versus Its Peers Critical Survey

Mesoblast (NASDAQ: MESO) is one of 185 publicly-traded companies in the “Biotechnology & Medical Research” industry, but how does it weigh in compared to its rivals? We will compare Mesoblast to related businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Mesoblast and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesoblast -2,006.86% -12.04% -9.60%
Mesoblast Competitors -3,318.51% -533.68% -40.13%

Insider & Institutional Ownership

2.9% of Mesoblast shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 18.8% of Mesoblast shares are owned by insiders. Comparatively, 14.5% of shares of all “Biotechnology & Medical Research” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Mesoblast and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesoblast 0 2 4 0 2.67
Mesoblast Competitors 533 2402 6581 123 2.65

Mesoblast currently has a consensus price target of $14.25, suggesting a potential upside of 172.47%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 17.46%. Given Mesoblast’s stronger consensus rating and higher probable upside, research analysts clearly believe Mesoblast is more favorable than its rivals.

Earnings and Valuation

This table compares Mesoblast and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mesoblast $2.41 million -$76.81 million -6.71
Mesoblast Competitors $217.29 million -$39.39 million -68.61

Mesoblast’s rivals have higher revenue and earnings than Mesoblast. Mesoblast is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Mesoblast has a beta of 2.68, suggesting that its stock price is 168% more volatile than the S&P 500. Comparatively, Mesoblast’s rivals have a beta of 1.57, suggesting that their average stock price is 57% more volatile than the S&P 500.

Summary

Mesoblast beats its rivals on 7 of the 12 factors compared.

Mesoblast Company Profile

Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.

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