Rapid Micro Biosystems (NASDAQ:RPID) & Charles River Laboratories International (NYSE:CRL) Head-To-Head Review

Charles River Laboratories International (NYSE:CRL) and Rapid Micro Biosystems (NASDAQ:RPID) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Charles River Laboratories International and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles River Laboratories International	-5.96%	15.75%	6.51%
Rapid Micro Biosystems	-145.56%	-177.04%	-73.12%

Insider and Institutional Ownership

98.9% of Charles River Laboratories International shares are held by institutional investors. Comparatively, 52.6% of Rapid Micro Biosystems shares are held by institutional investors. 1.3% of Charles River Laboratories International shares are held by company insiders. Comparatively, 12.7% of Rapid Micro Biosystems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Charles River Laboratories International and Rapid Micro Biosystems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charles River Laboratories International	$4.02 billion	3.51	-$144.34 million	($4.85)	-60.87
Rapid Micro Biosystems	$33.59 million	2.51	-$47.12 million	($1.12)	-1.50

Rapid Micro Biosystems has lower revenue, but higher earnings than Charles River Laboratories International. Charles River Laboratories International is trading at a lower price-to-earnings ratio than Rapid Micro Biosystems, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Charles River Laboratories International has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Rapid Micro Biosystems has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Charles River Laboratories International and Rapid Micro Biosystems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles River Laboratories International	1	3	12	0	2.69
Rapid Micro Biosystems	1	0	2	0	2.33

Charles River Laboratories International presently has a consensus target price of $255.65, suggesting a potential downside of 13.41%. Rapid Micro Biosystems has a consensus target price of $6.00, suggesting a potential upside of 257.14%. Given Rapid Micro Biosystems’ higher probable upside, analysts plainly believe Rapid Micro Biosystems is more favorable than Charles River Laboratories International.

Summary

Charles River Laboratories International beats Rapid Micro Biosystems on 8 of the 14 factors compared between the two stocks.

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.

About Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.