Critical Analysis: Mesoblast (MESO) vs. Adaptimmune Therapeutics (ADAP)

Mesoblast (NASDAQ:MESO) and Adaptimmune Therapeutics (NASDAQ:ADAP) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Mesoblast has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Adaptimmune Therapeutics has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.



Analyst Ratings

This is a summary of current ratings and target prices for Mesoblast and Adaptimmune Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesoblast 0 0 4 0 3.00
Adaptimmune Therapeutics 0 2 4 0 2.67

Mesoblast presently has a consensus price target of $15.13, indicating a potential upside of 183.24%. Adaptimmune Therapeutics has a consensus price target of $6.79, indicating a potential upside of 73.15%. Given Mesoblast’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mesoblast is more favorable than Adaptimmune Therapeutics.

Valuation & Earnings

This table compares Mesoblast and Adaptimmune Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesoblast $17.34 million 29.00 -$35.29 million ($0.63) -8.48
Adaptimmune Therapeutics $59.51 million 6.90 -$95.51 million ($0.96) -4.08

Mesoblast has higher earnings, but lower revenue than Adaptimmune Therapeutics. Mesoblast is trading at a lower price-to-earnings ratio than Adaptimmune Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mesoblast and Adaptimmune Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesoblast -528.80% -15.98% -12.53%
Adaptimmune Therapeutics -161.09% -45.03% -38.27%

Insider and Institutional Ownership

2.8% of Mesoblast shares are held by institutional investors. Comparatively, 66.0% of Adaptimmune Therapeutics shares are held by institutional investors. 18.8% of Mesoblast shares are held by insiders. Comparatively, 22.4% of Adaptimmune Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Mesoblast beats Adaptimmune Therapeutics on 8 of the 13 factors compared between the two stocks.

Mesoblast Company Profile

Mesoblast Limited, a biopharmaceutical company, develops and commercializes allogeneic cellular medicines. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage adult stem cells. The company's products under the Phase III clinical trials include MSC-100-IV for steroid refractory acute graft versus host disease; MPC-150-IM for advanced heart failure; and MPC-06-ID for chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV that is in Phase II clinical trials for the treatment of biologic refractory rheumatoid arthritis, diabetic kidney diseases, and type 2 diabetic nephropathy. It operates in the United States, Australia, Singapore, the United Kingdom, and Switzerland. Mesoblast Limited has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; and JCR Pharmaceuticals Co. Ltd. for the treatment of wound healing in epidermolysis bullosa. The company was founded in 2004 and is headquartered in Melbourne, Australia.

Adaptimmune Therapeutics Company Profile

Adaptimmune Therapeutics plc, a clinical-stage biopharmaceutical company, focuses on the provision of cancer immunotherapy products based on its proprietary Specific Peptide Enhanced Affinity Receptor (SPEAR) T-cell platform. Its platform enables in identifying cancer targets; finding and genetically engineering T-cell receptors (TCR); and producing TCR therapeutic candidates for administration to patients. It is developing MAGE A-10 peptide that is in Phase I/II clinical trials for the treatment of urothelial, melanoma, and head and neck cancers, as well as non-small cell lung cancer (NSCLC); MAGE-A4 to treat urothelial, melanoma, head and neck, ovarian, NSCLC, esophageal, and gastric cancers; and AFP SPEAR T-cell therapeutic candidate that is in Phase I/II clinical trials for targeting a peptide associated with hepatocellular carcinoma. Adaptimmune Therapeutics plc has a strategic collaboration and licensing agreement with GlaxoSmithKline for the development and commercialization of the NY-ESO SPEAR T-cell program; and strategic alliance with The University of Texas MD Anderson Cancer Center for the development of T-cell therapies for various cancers. The company also has a clinical trial collaboration agreement with Merck & Co., Inc. for the assessment of NY-ESO SPEAR T-cell therapy in combination with anti-programmed death-1 inhibitor in patients with multiple myeloma; and a research, collaboration, and license agreement with Universal Cells, Inc. to gene editing and HLA-engineering technology, as well as a co-development and co-commercialization agreement with Bellicum Pharmaceutical Inc. to evaluate, develop, and commercialize next generation T-cell therapies. Adaptimmune Therapeutics plc was founded in 2014 and is headquartered in Abingdon, the United Kingdom.

Receive News & Ratings for Mesoblast Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mesoblast and related companies with MarketBeat.com's FREE daily email newsletter.