Financial Analysis: Mersana Therapeutics (NASDAQ:MRSN) vs. Bohai Pharmaceuticals Group (NASDAQ:BOPH)

Mersana Therapeutics (NASDAQ:MRSN) and Bohai Pharmaceuticals Group (OTCMKTS:BOPH) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Mersana Therapeutics and Bohai Pharmaceuticals Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mersana Therapeutics -66.97% -27.93% -21.78%
Bohai Pharmaceuticals Group N/A N/A N/A

Volatility and Risk

Mersana Therapeutics has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Bohai Pharmaceuticals Group has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Mersana Therapeutics and Bohai Pharmaceuticals Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mersana Therapeutics 0 0 2 0 3.00
Bohai Pharmaceuticals Group 0 0 0 0 N/A

Mersana Therapeutics currently has a consensus target price of $13.00, indicating a potential upside of 110.19%. Given Mersana Therapeutics’ higher probable upside, analysts plainly believe Mersana Therapeutics is more favorable than Bohai Pharmaceuticals Group.

Institutional and Insider Ownership

78.1% of Mersana Therapeutics shares are owned by institutional investors. 29.2% of Mersana Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mersana Therapeutics and Bohai Pharmaceuticals Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mersana Therapeutics $42.12 million 6.67 -$28.21 million ($0.65) -9.52
Bohai Pharmaceuticals Group N/A N/A N/A N/A N/A

Bohai Pharmaceuticals Group has lower revenue, but higher earnings than Mersana Therapeutics.

Summary

Mersana Therapeutics beats Bohai Pharmaceuticals Group on 5 of the 9 factors compared between the two stocks.

About Mersana Therapeutics

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need. The company develops Dolaflexin, a platform, which is used to generate a pipeline of proprietary ADC product candidates to address patient populations that are not amenable to treat with traditional ADC-based therapies. Its lead product candidate is XMT-1536, a Dolaflexin ADC targeting NaPi2b that is in Phase I clinical trial for the treatment of patients with ovarian cancer, non small cell lung cancer, and other orphan indications. Mersana Therapeutics, Inc. has a strategic research and development partnerships with Merck KGaA and Asana BioSciences, LLC for the development of ADC product candidates utilizing Fleximer. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is based in Cambridge, Massachusetts.

About Bohai Pharmaceuticals Group

Bohai Pharmaceuticals Group, Inc. engages in the production, manufacture, and distribution of herbal pharmaceuticals based on traditional Chinese medicine. Its products include lung nourishing syrup, tongbi capsules, tongbi tablets, zhuangyuanshenhailong medicinal wine, bazhenyimu cream, fangfengtongsheng granule, and zhengxintai capsules. The company was founded on January 9, 2008 and is headquartered in Yantai, China.

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