Comparing Vericel (NASDAQ:VCEL) & Alkermes (NASDAQ:ALKS)

Vericel (NASDAQ:VCEL) and Alkermes (NASDAQ:ALKS) are both mid-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Vericel and Alkermes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vericel	7.91%	6.91%	5.02%
Alkermes	3.96%	4.15%	2.19%

Risk and Volatility

Vericel has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Alkermes has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Earnings and Valuation

This table compares Vericel and Alkermes”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vericel	$306.30 million	6.73	$16.52 million	$0.47	85.66
Alkermes	$1.67 billion	4.56	$241.66 million	$0.38	119.32

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

Analyst Ratings

This is a summary of recent recommendations for Vericel and Alkermes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vericel	0	2	4	0	2.67
Alkermes	1	5	11	1	2.67

Vericel presently has a consensus price target of $57.20, indicating a potential upside of 42.08%. Alkermes has a consensus price target of $54.38, indicating a potential upside of 19.93%. Given Vericel’s higher probable upside, equities analysts clearly believe Vericel is more favorable than Alkermes.

Institutional & Insider Ownership

95.2% of Alkermes shares are owned by institutional investors. 7.6% of Vericel shares are owned by insiders. Comparatively, 4.6% of Alkermes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Vericel beats Alkermes on 8 of the 14 factors compared between the two stocks.

About Vericel

Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in North America. The company markets autologous cell therapy products comprising MACI, an autologous cultured chondrocytes on porcine collagen membrane for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns; and NexoBrid, a biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.

About Alkermes

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. It has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; and LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. The company also offers proprietary technology platforms to third parties to enable them to develop, commercialize, and manufacture products. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.