Analyzing AbCellera Biologics (NASDAQ:ABCL) and Anika Therapeutics (NASDAQ:ANIK)

Anika Therapeutics (NASDAQ:ANIK) and AbCellera Biologics (NASDAQ:ABCL) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Institutional and Insider Ownership

91.5% of Anika Therapeutics shares are held by institutional investors. Comparatively, 61.4% of AbCellera Biologics shares are held by institutional investors. 12.1% of Anika Therapeutics shares are held by company insiders. Comparatively, 28.4% of AbCellera Biologics shares are held 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

Anika Therapeutics has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Profitability

This table compares Anika Therapeutics and AbCellera Biologics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anika Therapeutics	-3.14%	0.20%	0.15%
AbCellera Biologics	-248.83%	-17.49%	-12.36%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Anika Therapeutics and AbCellera Biologics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anika Therapeutics	1	1	2	0	2.25
AbCellera Biologics	1	1	6	2	2.90

Anika Therapeutics currently has a consensus target price of $22.00, indicating a potential upside of 51.20%. AbCellera Biologics has a consensus target price of $15.78, indicating a potential upside of 32.81%. Given Anika Therapeutics’ higher probable upside, equities analysts clearly believe Anika Therapeutics is more favorable than AbCellera Biologics.

Valuation and Earnings

This table compares Anika Therapeutics and AbCellera Biologics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anika Therapeutics	$112.82 million	1.73	-$10.88 million	($0.27)	-53.89
AbCellera Biologics	$75.13 million	48.48	-$146.41 million	($0.54)	-22.00

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

Summary

Anika Therapeutics beats AbCellera Biologics on 8 of the 15 factors compared between the two stocks.

About Anika Therapeutics

Anika Therapeutics, Inc., a joint preservation company, creates and delivers advancements in early intervention orthopedic care in the areas of osteoarthritis (OA) pain management, regenerative solutions, sports medicine, and arthrosurface joint solutions in the United States, Europe, and internationally. The company develops, manufactures, and commercializes products based on hyaluronic acid (HA) technology platform. Its OA pain management products includes Monovisc and Orthovisc, an injectable HA-based viscosupplement for the pain relief from osteoarthritis conditions; and Cingal, a single-injection OA pain management product to provide both short- and long-term pain relief. The company’s joint preservation and restoration product family comprises and orthopedic regenerative solutions, including Hyalofast and Tactoset; sports medicine solutions used to repair and reconstruct damaged ligaments and tendons; and preserving joint solutions, including partial joint replacement, joint resurfacing, and invasive and bone sparing implants, which are designed to treat upper and lower extremity orthopedic conditions. In addition, it offers non-orthopedic products comprising HA-based products for non-orthopedic applications including Hyvisc, a molecular weight injectable HA veterinary product; Hyalobarrier, an anti-adhesion barrier indicated for use after abdominal-pelvic surgeries; and Hyalomatrix used for the treatment of burns and ulcers, as well as products used for the treatment of ears, nose and throat disorders, and ophthalmic products. The company was founded in 1983 and is headquartered in Bedford, Massachusetts.

About AbCellera Biologics

AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.