Aceto (NASDAQ:ACET) vs. Celsius (CELH) Critical Comparison

Celsius (NASDAQ: CELH) and Aceto (NASDAQ:ACET) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Volatility and Risk

Celsius has a beta of -0.79, meaning that its stock price is 179% less volatile than the S&P 500. Comparatively, Aceto has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Earnings and Valuation

This table compares Celsius and Aceto’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celsius $22.76 million 10.94 -$3.06 million ($0.09) -60.56
Aceto $638.32 million 0.54 $11.37 million $0.21 54.14

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

Dividends

Aceto pays an annual dividend of $0.26 per share and has a dividend yield of 2.3%. Celsius does not pay a dividend. Aceto pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

6.2% of Celsius shares are owned by institutional investors. Comparatively, 80.8% of Aceto shares are owned by institutional investors. 49.0% of Celsius shares are owned by company insiders. Comparatively, 4.1% of Aceto shares are owned 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Celsius and Aceto, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celsius 0 0 1 0 3.00
Aceto 0 2 1 0 2.33

Celsius presently has a consensus target price of $7.00, suggesting a potential upside of 28.44%. Aceto has a consensus target price of $15.00, suggesting a potential upside of 31.93%. Given Aceto’s higher probable upside, analysts clearly believe Aceto is more favorable than Celsius.

Profitability

This table compares Celsius and Aceto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celsius -10.37% -18.23% -12.52%
Aceto 1.07% 10.18% 3.95%

Summary

Aceto beats Celsius on 11 of the 15 factors compared between the two stocks.

Celsius Company Profile

Celsius Holdings, Inc. is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness beverages under the Celsius brand name. The Company’s product range includes Sparkling Grape Rush, Sparkling Watermelon, Sparkling Orange, Sparkling Wild Berry, Sparkling Cola, Raspberry Acai Green Tea, Peach Mango Green Tea, Flo Fusion Orange and Flo Fusion Berry. The Company’s products are sweetened with sucralose, which is suitable for consumers whose sugar intake is restricted. The Company’s Celsius brand uses ingredients and supplements, such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. The Company outsources the manufacturing process to third-party co-packers. It provides co-packers with flavors, ingredient blends, cans and other raw materials for its beverages purchased by it from various suppliers. It sells Celsius brand across retail segments, which include supermarkets and convenience stores.

Aceto Company Profile

Aceto Corporation (Aceto) is engaged in the marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products. The Company’s business is organized along product lines into three segments: Human Health, Pharmaceutical Ingredients and Performance Chemicals. As of June 30, 2016, it distributed over 1,100 chemical compounds used primarily as finished products or raw materials in the agricultural, coatings and industrial chemical industries. The Human Health segment includes finished dosage form generic drugs and nutraceutical products. As of June 30, 2016, the Pharmaceutical Ingredients segment had two product groups: Active Pharmaceutical Ingredients and Pharmaceutical Intermediates. The Performance Chemicals segment includes specialty chemicals and agricultural protection products.

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