Head-To-Head Comparison: Lonza Group (OTCMKTS:LZAGY) and Nephros (NASDAQ:NEPH)

Nephros (NASDAQ:NEPH) and Lonza Group (OTCMKTS:LZAGY) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Risk and Volatility

Nephros has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Lonza Group has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nephros and Lonza Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	1	1	0	2.50
Lonza Group	0	1	1	0	2.50

Nephros presently has a consensus price target of $6.00, suggesting a potential upside of 95.44%. Given Nephros’ higher possible upside, analysts plainly believe Nephros is more favorable than Lonza Group.

Valuation and Earnings

This table compares Nephros and Lonza Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$18.79 million	1.74	$1.19 million	$0.11	27.91
Lonza Group	$7.88 billion	5.43	$1.15 billion	N/A	N/A

Lonza Group has higher revenue and earnings than Nephros.

Profitability

This table compares Nephros and Lonza Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nephros	6.35%	12.22%	9.38%
Lonza Group	N/A	N/A	N/A

Insider and Institutional Ownership

41.1% of Nephros shares are owned by institutional investors. Comparatively, 0.0% of Lonza Group shares are owned by institutional investors. 6.7% of Nephros shares are owned by insiders. Comparatively, 0.1% of Lonza Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Nephros beats Lonza Group on 7 of the 10 factors compared between the two stocks.

About Nephros

Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.

About Lonza Group

Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Biologics, Small Molecules, Cell & Gene, and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. The Small Molecules segment operates as an integrated development and manufacturing service provider for small molecule drug substances and their intermediates. This segment also supports customers across various aspects of design, development, and manufacturing, including particle engineering and drug product packaging. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies; offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. This segment also provides Cocoon platform, a closed automated system for patient-scale cell therapy manufacturing; and specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. The Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.