CoLucid Pharmaceuticals (NASDAQ: CLCD) and Celgene (NASDAQ:CELG) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

64.2% of CoLucid Pharmaceuticals shares are owned by institutional investors. Comparatively, 79.7% of Celgene shares are owned by institutional investors. 13.7% of CoLucid Pharmaceuticals shares are owned by insiders. Comparatively, 1.0% of Celgene shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CoLucid Pharmaceuticals and Celgene, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoLucid Pharmaceuticals 0 3 1 0 2.25
Celgene 1 12 18 0 2.55

CoLucid Pharmaceuticals currently has a consensus target price of $47.83, indicating a potential upside of 2.80%. Celgene has a consensus target price of $131.60, indicating a potential upside of 25.34%. Given Celgene’s stronger consensus rating and higher probable upside, analysts plainly believe Celgene is more favorable than CoLucid Pharmaceuticals.

Profitability

This table compares CoLucid Pharmaceuticals and Celgene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoLucid Pharmaceuticals N/A -83.51% -70.62%
Celgene 27.36% 63.80% 17.45%

Earnings & Valuation

This table compares CoLucid Pharmaceuticals and Celgene’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoLucid Pharmaceuticals N/A N/A N/A ($3.43) -13.57
Celgene $11.23 billion 7.36 $2.00 billion $4.21 24.94

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

Summary

Celgene beats CoLucid Pharmaceuticals on 10 of the 11 factors compared between the two stocks.

About CoLucid Pharmaceuticals

CoLucid Pharmaceuticals, Inc. is a Phase III clinical-stage biopharmaceutical company. The Company is engaged in developing a small molecule for the acute treatment of migraine headaches. Its product candidates address the needs of migraine patients, including those with cardiovascular risk factors or stable cardiovascular disease and those dissatisfied with existing therapies. Lasmiditan, the Company’s lead product candidate, is an oral tablet for the acute treatment of migraine in adults. Lasmiditan selectively targets 5-HT1F receptors expressed in the trigeminal pathway in the central nervous system (CNS). Lasmiditan is designed to penetrate the CNS and block the pathway that contributes to headache pain. It is developing IV lasmiditan for the acute treatment of headache pain associated with migraine in adults, to be used in emergency rooms and urgent care settings. The Company is conducting its Phase III randomized, double-blind, placebo-controlled clinical trial of lasmiditan.

About Celgene

Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.

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