GenVec (NASDAQ: GNVC) and Mesoblast (NASDAQ:MESO) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current recommendations for GenVec and Mesoblast, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GenVec 0 2 0 0 2.00
Mesoblast 0 2 4 0 2.67

GenVec presently has a consensus target price of $7.00, suggesting a potential downside of 2.68%. Mesoblast has a consensus target price of $14.25, suggesting a potential upside of 160.04%. Given Mesoblast’s stronger consensus rating and higher possible upside, analysts plainly believe Mesoblast is more favorable than GenVec.

Earnings & Valuation

This table compares GenVec and Mesoblast’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GenVec N/A N/A N/A ($3.67) -1.96
Mesoblast $2.41 million 194.73 -$76.81 million ($0.78) -7.03

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

Insider & Institutional Ownership

6.2% of GenVec shares are owned by institutional investors. Comparatively, 2.9% of Mesoblast shares are owned by institutional investors. 8.1% of GenVec shares are owned by company insiders. Comparatively, 18.8% of Mesoblast shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GenVec and Mesoblast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GenVec -3,748.25% -648.22% -271.77%
Mesoblast -2,006.86% -12.04% -9.60%

Summary

Mesoblast beats GenVec on 9 of the 10 factors compared between the two stocks.

About GenVec

GenVec, Inc. (GenVec) is a clinical-stage biopharmaceutical company, engaged in the development of therapeutics and vaccines. The Company designs, tests and manufactures adenoviral-based product candidates. The Company’s development programs address therapeutic areas, such as hearing loss and balance disorders, as well as vaccines against infectious diseases, including respiratory syncytial virus (RSV), herpes simplex virus (HSV), Enterovirus D68 (EV-D68) and malaria. In the area of animal health, it is developing vaccines against foot-and-mouth disease (FMD). The Company develops and commercializes its product candidates through collaborations. The Company’s lead product candidate is CGF166. The Company’s vaccine candidates include preventative vaccines against RSV and malaria, and a therapeutic vaccine for HSV. The Company is developing vaccine and anti-viral candidates for the prevention and containment of FMD outbreaks.

About Mesoblast

Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.

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