Contrasting Aceto (ACET) and Cellectar Biosciences (CLRB)

Cellectar Biosciences (NASDAQ: CLRB) and Aceto (NASDAQ:ACET) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cellectar Biosciences and Aceto, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellectar Biosciences 0 0 0 0 N/A
Aceto 0 0 1 0 3.00

Aceto has a consensus price target of $10.00, indicating a potential upside of 38.12%. Given Aceto’s higher possible upside, analysts plainly believe Aceto is more favorable than Cellectar Biosciences.

Profitability

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

Net Margins Return on Equity Return on Assets
Cellectar Biosciences N/A -108.18% -91.41%
Aceto -0.79% 10.26% 4.01%

Earnings and Valuation

This table compares Cellectar Biosciences and Aceto’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cellectar Biosciences N/A N/A -$6.18 million ($1.07) -1.08
Aceto $638.32 million 0.35 $11.37 million ($0.17) -42.59

Aceto has higher revenue and earnings than Cellectar Biosciences. Aceto is trading at a lower price-to-earnings ratio than Cellectar Biosciences, 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 3.6%. Cellectar Biosciences does not pay a dividend. Aceto pays out -152.9% of its earnings in the form of a dividend.

Risk and Volatility

Cellectar Biosciences has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Aceto has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Insider & Institutional Ownership

1.7% of Cellectar Biosciences shares are owned by institutional investors. Comparatively, 76.7% of Aceto shares are owned by institutional investors. 10.2% of Cellectar Biosciences shares are owned by company insiders. Comparatively, 4.1% of Aceto shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Aceto beats Cellectar Biosciences on 11 of the 14 factors compared between the two stocks.

About Cellectar Biosciences

Cellectar Biosciences, Inc., formerly Novelos Therapeutics, Inc., is a clinical stage biopharmaceutical company. The Company is engaged in developing phospholipid ether-drug conjugates (PDCs) for the treatment and diagnostic imaging of cancer. Its research and development program is based on its PDC cancer targeting delivery platform. Its pipeline consists of pre-clinical and clinical product candidates, including radiotherapeutic and chemotherapeutic PDC’s. The Company’s PDC product portfolio includes CLR 131, which is designed to deliver cytotoxic (cell-killing) radiation directly and selectively to cancer cells and cancer stem cells; CLR 125, which is for the treatment of micro metastatic disease; CLR 124, which is a cancer-targeting positron emission tomography (PET) imaging PDC; CLR 1502, which is for intraoperative tumor margin illumination and non-invasive tumor imaging, and CTX Product Portfolio, including CLR 1601-PTX, CLR 1602-PTX and CLR 1603-PTX product candidates.

About Aceto

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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