Analyzing Cerus (CERS) and The Competition

Cerus (NASDAQ: CERS) is one of 19 publicly-traded companies in the “Medical Devices & Implants” industry, but how does it compare to its peers? We will compare Cerus to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Insider & Institutional Ownership

58.5% of Cerus shares are held by institutional investors. Comparatively, 54.8% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 7.4% of Cerus shares are held by insiders. Comparatively, 10.3% of shares of all “Medical Devices & Implants” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cerus and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cerus $39.28 million -$62.90 million -6.12
Cerus Competitors $1.67 billion $207.58 million 86.85

Cerus’ peers have higher revenue and earnings than Cerus. Cerus is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cerus and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerus 0 0 5 0 3.00
Cerus Competitors 111 728 1026 10 2.50

Cerus presently has a consensus price target of $6.60, suggesting a potential upside of 82.83%. As a group, “Medical Devices & Implants” companies have a potential upside of 36.50%. Given Cerus’ stronger consensus rating and higher probable upside, analysts plainly believe Cerus is more favorable than its peers.

Profitability

This table compares Cerus and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerus -159.35% -142.18% -67.72%
Cerus Competitors -101.23% -92.70% -30.32%

Volatility & Risk

Cerus has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Cerus’ peers have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.

Summary

Cerus peers beat Cerus on 7 of the 12 factors compared.

Cerus Company Profile

Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.

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