Comparing Cerus (NASDAQ:CERS) & RenovaCare (NASDAQ:RCAR)

Cerus (NASDAQ:CERS) and RenovaCare (OTCMKTS:RCAR) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Volatility and Risk

Cerus has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, RenovaCare has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500.

Profitability

This table compares Cerus and RenovaCare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerus -90.68% -74.31% -38.27%
RenovaCare N/A -25.42% -22.83%

Earnings & Valuation

This table compares Cerus and RenovaCare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cerus $60.91 million 12.08 -$57.56 million ($0.44) -12.14
RenovaCare N/A N/A -$2.12 million N/A N/A

RenovaCare has lower revenue, but higher earnings than Cerus.

Institutional and Insider Ownership

66.2% of Cerus shares are held by institutional investors. 7.3% of Cerus shares are held by company insiders. Comparatively, 0.9% of RenovaCare shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cerus and RenovaCare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerus 0 0 1 0 3.00
RenovaCare 0 0 0 0 N/A

Cerus currently has a consensus target price of $9.00, indicating a potential upside of 68.54%. Given Cerus’ higher probable upside, equities analysts clearly believe Cerus is more favorable than RenovaCare.

About Cerus

Cerus Corporation, a biomedical products company, focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; and INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion. It markets platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was founded in 1991 and is headquartered in Concord, California.

About RenovaCare

RenovaCare, Inc., a development-stage company, focuses on the acquisition, development, and commercialization of autologous cellular therapies for use in medical and aesthetic applications. It is developing CellMist System for spraying a patient's own skin stem cells onto burns and wounds for self-healing; and SkinGun, a solution sprayer device for delivering the cells to the treatment area. The company was formerly known as Janus Resources, Inc. and changed its name to RenovaCare, Inc. in January 2014. RenovaCare, Inc. is based in Scottsdale, Arizona.

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