Celgene Corporation (CELG) vs. Sage Therapeutics (SAGE) Head to Head Comparison

Celgene Corporation (NASDAQ: CELG) and Sage Therapeutics (NASDAQ:SAGE) are both mid-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitabiliy.

Volatility & Risk

Celgene Corporation has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Sage Therapeutics has a beta of 2.99, suggesting that its stock price is 199% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Celgene Corporation and Sage Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celgene Corporation 1 4 20 0 2.76
Sage Therapeutics 0 2 9 1 2.92

Celgene Corporation currently has a consensus price target of $140.24, indicating a potential upside of 12.05%. Sage Therapeutics has a consensus price target of $84.92, indicating a potential upside of 1.21%. Given Celgene Corporation’s higher probable upside, equities analysts plainly believe Celgene Corporation is more favorable than Sage Therapeutics.

Valuation and Earnings

This table compares Celgene Corporation and Sage Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Celgene Corporation $11.68 billion 8.37 $4.11 billion $2.65 47.23
Sage Therapeutics N/A N/A -$186.56 million ($5.25) -15.98

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

Profitability

This table compares Celgene Corporation and Sage Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celgene Corporation 18.32% 70.94% 16.37%
Sage Therapeutics N/A -54.56% -50.48%

Insider and Institutional Ownership

78.3% of Celgene Corporation shares are held by institutional investors. 1.0% of Celgene Corporation shares are held by insiders. Comparatively, 5.6% of Sage Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Celgene Corporation beats Sage Therapeutics on 9 of the 13 factors compared between the two stocks.

Celgene Corporation Company Profile

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.

Sage Therapeutics Company Profile

SAGE Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing and commercializing medicines to treat central nervous system (CNS) disorders. The Company’s lead product candidate, SAGE-547 is an intravenous formulation of allopregnanolone, a neurosteroid that acts as a synaptic and extrasynaptic modulator of the Gamma-Amino Butyric Acid-A (GABAA) receptor. The Company’s next-generation product candidates, SAGE-217 and SAGE-689, also target the GABAA receptor system. The Company is focused on developing drugs based on selective allosteric modulation of CNS synaptic and extrasynaptic receptors. The Company’s chemistry platform is focused on the chemical scaffolds of endogenous or chemically modified synthetic neuroactive steroid compounds that are allosteric modulators of GABAA or N-Methyl-D-aspartic acid or N-Methyl-D-aspartate (NMDA) receptors.

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