Critical Survey: DermTech (NASDAQ:DMTK) vs. Celcuity (NASDAQ:CELC)

DermTech (NASDAQ:DMTK) and Celcuity (NASDAQ:CELC) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Volatility & Risk

DermTech has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Celcuity has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for DermTech and Celcuity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DermTech 0 0 5 0 3.00
Celcuity 0 0 2 0 3.00

DermTech presently has a consensus target price of $22.33, indicating a potential downside of 42.91%. Celcuity has a consensus target price of $16.50, indicating a potential upside of 34.15%. Given Celcuity’s higher possible upside, analysts clearly believe Celcuity is more favorable than DermTech.

Valuation and Earnings

This table compares DermTech and Celcuity’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DermTech $3.36 million 228.14 -$19.69 million ($2.81) -13.92
Celcuity N/A N/A -$7.36 million ($0.72) -17.08

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

Insider & Institutional Ownership

46.7% of DermTech shares are owned by institutional investors. Comparatively, 18.6% of Celcuity shares are owned by institutional investors. 16.5% of DermTech shares are owned by company insiders. Comparatively, 43.5% of Celcuity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares DermTech and Celcuity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DermTech -577.75% -65.00% -58.37%
Celcuity N/A -52.57% -49.69%

Summary

Celcuity beats DermTech on 9 of the 12 factors compared between the two stocks.

DermTech Company Profile

DermTech, Inc., a molecular diagnostic company, develops and markets novel non-invasive diagnostic tests to diagnosis skin cancer and related conditions in the United States. The company offers Pigmented Lesion Assay (PLA), a gene expression test that helps rule out melanoma and the need for a surgical biopsy of atypical pigmented lesions. It also provides Nevome test, an adjunctive reflex test for the PLA; and adhesive skin sample collection kits, as well as gene expression assays for the Th1, Th2, IFN-gamma, and Th17 inflammatory pathways. The company is also developing non-melanoma skin cancer diagnostic and non-melanoma skin cancer risk assessment products. The company sells its products primarily to pathology and oncology practitioners. DermTech, Inc. is headquartered in La Jolla, California.

Celcuity Company Profile

Celcuity Inc., a clinical stage biotechnology company, discovers cancer sub-types and therapeutic options for cancer patients in the United States. The company's CELsignia diagnostic platform uses a patient's living tumor cells to identify the specific abnormal cellular process driving a patient's cancer and the targeted therapy that treats it. It develops CELsignia HSF test to diagnose two new sub-types of HER2-negative breast cancer. The company is also developing CELsignia MP test to diagnose 11 cancer sub-types in breast, lung, colon, ovarian, kidney, and bladder cancers. Celcuity Inc. was founded in 2011 and is headquartered in Minneapolis, Minnesota.

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