Capricor Therapeutics (NASDAQ:CAPR) versus Rockwell Medical (NASDAQ:RMTI) Financial Analysis

Capricor Therapeutics (NASDAQ:CAPR) and Rockwell Medical (NASDAQ:RMTI) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

21.7% of Capricor Therapeutics shares are owned by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are owned by institutional investors. 10.5% of Capricor Therapeutics shares are owned by company insiders. Comparatively, 1.9% of Rockwell Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Capricor Therapeutics and Rockwell Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capricor Therapeutics	1	0	7	1	2.89
Rockwell Medical	1	0	2	1	2.75

Capricor Therapeutics presently has a consensus price target of $22.25, suggesting a potential upside of 213.82%. Rockwell Medical has a consensus price target of $4.00, suggesting a potential upside of 263.64%. Given Rockwell Medical’s higher possible upside, analysts clearly believe Rockwell Medical is more favorable than Capricor Therapeutics.

Profitability

This table compares Capricor Therapeutics and Rockwell Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capricor Therapeutics	N/A	-62.71%	-50.82%
Rockwell Medical	-2.38%	-6.79%	-3.77%

Earnings & Valuation

This table compares Capricor Therapeutics and Rockwell Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capricor Therapeutics	$22.27 million	14.56	-$40.47 million	($1.64)	-4.32
Rockwell Medical	$101.49 million	0.37	-$480,000.00	($0.06)	-18.33

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

Volatility & Risk

Capricor Therapeutics has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Summary

Rockwell Medical beats Capricor Therapeutics on 8 of the 14 factors compared between the two stocks.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.

About Rockwell Medical

Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.