AbCellera Biologics (NASDAQ:ABCL – Get Free Report) and Dermata Therapeutics (NASDAQ:DRMA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Profitability
This table compares AbCellera Biologics and Dermata Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AbCellera Biologics | -198.37% | -15.05% | -10.92% |
| Dermata Therapeutics | N/A | -130.89% | -102.20% |
Institutional & Insider Ownership
61.4% of AbCellera Biologics shares are owned by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are owned by institutional investors. 28.9% of AbCellera Biologics shares are owned by insiders. Comparatively, 18.5% of Dermata Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AbCellera Biologics | $75.13 million | 13.82 | -$146.41 million | ($0.49) | -6.99 |
| Dermata Therapeutics | N/A | N/A | -$7.56 million | ($9.33) | -0.14 |
Dermata Therapeutics has lower revenue, but higher earnings than AbCellera Biologics. AbCellera Biologics is trading at a lower price-to-earnings ratio than Dermata Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
AbCellera Biologics has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for AbCellera Biologics and Dermata Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AbCellera Biologics | 1 | 1 | 3 | 0 | 2.40 |
| Dermata Therapeutics | 1 | 0 | 1 | 0 | 2.00 |
AbCellera Biologics currently has a consensus price target of $7.75, suggesting a potential upside of 126.28%. Dermata Therapeutics has a consensus price target of $10.00, suggesting a potential upside of 662.78%. Given Dermata Therapeutics’ higher possible upside, analysts clearly believe Dermata Therapeutics is more favorable than AbCellera Biologics.
Summary
AbCellera Biologics beats Dermata Therapeutics on 9 of the 13 factors compared between the two stocks.
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.
About Dermata Therapeutics
Dermata Therapeutics, Inc., a late-stage medical dermatology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of anxillary hyperhidrosis and aesthetic conditions. Dermata Therapeutics, Inc. was incorporated in 2014 and is headquartered in San Diego, California.
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