Celgene Corporation (NASDAQ: CELG) and Sage Therapeutics (NASDAQ:SAGE) are both mid-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitabiliy, earnings, risk and analyst recommendations.

Profitability

This table compares Celgene Corporation and Sage Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celgene Corporation 18.32% 70.94% 16.37%
Sage Therapeutics N/A -54.56% -50.48%

Earnings & Valuation

This table compares Celgene Corporation and Sage Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Celgene Corporation $11.68 billion 8.18 $4.11 billion $2.65 46.17
Sage Therapeutics N/A N/A -$186.56 million ($5.25) -15.18

Celgene Corporation has higher revenue and earnings than Sage Therapeutics. Sage Therapeutics is trading at a lower price-to-earnings ratio than Celgene Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

78.2% of Celgene Corporation shares are owned by institutional investors. 1.0% of Celgene Corporation shares are owned by company insiders. Comparatively, 5.6% of Sage Therapeutics shares are owned 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.

Volatility and Risk

Celgene Corporation has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Sage Therapeutics has a beta of 2.99, meaning that its share price is 199% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Celgene Corporation and Sage Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celgene Corporation 1 4 20 0 2.76
Sage Therapeutics 0 2 9 1 2.92

Celgene Corporation presently has a consensus price target of $140.24, indicating a potential upside of 14.61%. Sage Therapeutics has a consensus price target of $82.50, indicating a potential upside of 3.50%. Given Celgene Corporation’s higher possible upside, equities research analysts plainly believe Celgene Corporation is more favorable than Sage Therapeutics.

Summary

Celgene Corporation beats Sage Therapeutics on 9 of the 13 factors compared between the two stocks.

About Celgene Corporation

Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.

About Sage Therapeutics

SAGE Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing and commercializing medicines to treat central nervous system (CNS) disorders. The Company’s lead product candidate, SAGE-547 is an intravenous formulation of allopregnanolone, a neurosteroid that acts as a synaptic and extrasynaptic modulator of the Gamma-Amino Butyric Acid-A (GABAA) receptor. The Company’s next-generation product candidates, SAGE-217 and SAGE-689, also target the GABAA receptor system. The Company is focused on developing drugs based on selective allosteric modulation of CNS synaptic and extrasynaptic receptors. The Company’s chemistry platform is focused on the chemical scaffolds of endogenous or chemically modified synthetic neuroactive steroid compounds that are allosteric modulators of GABAA or N-Methyl-D-aspartic acid or N-Methyl-D-aspartate (NMDA) receptors.

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