Critical Survey: American Renal Associates (ARA) versus Caladrius Biosciences (CLBS)

American Renal Associates (NYSE: ARA) and Caladrius Biosciences (NASDAQ:CLBS) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

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This table compares American Renal Associates and Caladrius Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Renal Associates -1.00% 14.51% 2.06%
Caladrius Biosciences N/A -62.53% -38.56%

Institutional & Insider Ownership

91.6% of American Renal Associates shares are owned by institutional investors. Comparatively, 5.8% of Caladrius Biosciences shares are owned by institutional investors. 9.6% of American Renal Associates shares are owned by company insiders. Comparatively, 13.1% of Caladrius Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for American Renal Associates and Caladrius Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Renal Associates 0 1 2 0 2.67
Caladrius Biosciences 0 0 2 0 3.00

American Renal Associates presently has a consensus price target of $23.50, suggesting a potential upside of 37.83%. Caladrius Biosciences has a consensus price target of $9.50, suggesting a potential upside of 87.01%. Given Caladrius Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Caladrius Biosciences is more favorable than American Renal Associates.

Earnings and Valuation

This table compares American Renal Associates and Caladrius Biosciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Renal Associates $745.11 million 0.72 $4.85 million $0.61 27.95
Caladrius Biosciences $35.28 million 1.38 $22.97 million ($1.78) -2.85

Caladrius Biosciences has lower revenue, but higher earnings than American Renal Associates. Caladrius Biosciences is trading at a lower price-to-earnings ratio than American Renal Associates, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

American Renal Associates has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Caladrius Biosciences has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Summary

American Renal Associates beats Caladrius Biosciences on 7 of the 13 factors compared between the two stocks.

About American Renal Associates

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States. It operates dialysis clinics focusing on joint venture partnerships with physicians. The company offers kidney dialysis services to patients suffering from chronic kidney failure or end stage renal disease. As of December 31, 2017, it owned and operated 228 dialysis clinics in partnership with 401 nephrologist partners treating approximately 15,600 patients in 26 states and the District of Columbia. The company was founded in 1999 and is headquartered in Beverly, Massachusetts.

About Caladrius Biosciences

Caladrius Biosciences, Inc. is a cell therapy development company with product candidates in development based on multiple technology platforms and targeting autoimmune and cardiology indications. The Company’s lead product candidate, CLBS03, is a T regulatory cell (Treg) clinical Phase II therapy targeting adolescents with recent-onset type 1 diabetes mellitus (T1DM) using the patient’s own numerically and functionally enhanced Tregs. This therapy is based on a platform technology for immunomodulation. The Company is focused on commencing The Sanford Project: T-Rex Study, a Phase II prospective, randomized, placebo-controlled, double-blind clinical trial to evaluate its Treg product candidate, CLBS03, in adolescents with recent onset T1D. The Company plans to develop its product candidate, CLBS12, in Japan, which is an autologous therapy that derives its cells from peripheral blood through apheresis.

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