Contrasting Celldex Therapeutics (NASDAQ:CLDX) and Vertex Pharmaceuticals (NASDAQ:VRTX)

Vertex Pharmaceuticals (NASDAQ:VRTX) and Celldex Therapeutics (NASDAQ:CLDX) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Vertex Pharmaceuticals and Celldex Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex Pharmaceuticals	35.00%	23.09%	16.72%
Celldex Therapeutics	N/A	-52.35%	-47.61%

Valuation and Earnings

This table compares Vertex Pharmaceuticals and Celldex Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex Pharmaceuticals	$12.00 billion	11.77	$3.95 billion	$17.18	32.41
Celldex Therapeutics	$1.54 million	2,013.22	-$258.76 million	($4.35)	-9.08

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vertex Pharmaceuticals and Celldex Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex Pharmaceuticals	0	2	20	1	2.96
Celldex Therapeutics	1	1	10	1	2.85

Vertex Pharmaceuticals currently has a consensus target price of $569.52, suggesting a potential upside of 2.29%. Celldex Therapeutics has a consensus target price of $56.08, suggesting a potential upside of 42.06%. Given Celldex Therapeutics’ higher possible upside, analysts plainly believe Celldex Therapeutics is more favorable than Vertex Pharmaceuticals.

Insider and Institutional Ownership

91.0% of Vertex Pharmaceuticals shares are held by institutional investors. 0.2% of Vertex Pharmaceuticals shares are held by company insiders. Comparatively, 5.2% of Celldex Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Vertex Pharmaceuticals has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Celldex Therapeutics has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Summary

Vertex Pharmaceuticals beats Celldex Therapeutics on 10 of the 14 factors compared between the two stocks.

About Vertex Pharmaceuticals

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF). It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age or older; SYMDEKO/SYMKEVI for people with CF for 6 years of age or older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 year or older who have CF with ivacaftor. The company's pipeline includes VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1 clinical trial; VX-548, a non-opioid medicine for the treatment of acute and neuropathic pain which is in Phase 3 clinical trial; Exa-cel, for the treatment of sickle cell disease and transfusion-dependent beta thalassemia which is in Phase 2/3 clinical trial. In addition, it provides inaxaplin for the treatment of APOL1-mediated focal segmental glomerulosclerosis and co-morbidities, such as hypertension which is in single Phase 2/3; VX- 880 and VX-264, treatment for Type 1 Diabetes which is in Phase 1/2 clinical trial; VX-970, which is in Phase 2 clinical trial for the treatment of cancer; and VX-803 and VX-984 for treatment of cancer in Phase 1 clinical trial. Further, it sells the products to specialty pharmacy and specialty distributors in the United States, as well as retail pharmacies, hospitals, and clinics. Additionally, the company has collaborations with CRISPR Therapeutics AG.; Moderna, Inc.; Entrada Therapeutics, Inc.; Arbor Biotechnologies, Inc.; Mammoth Biosciences, Inc.; and Verve Therapeutics., as well as collaborations with Tevard Biosciences to develop novel tRNA-based therapies for duchenne muscular dystrophy. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

About Celldex Therapeutics

Celldex Therapeutics, Inc., a biopharmaceutical company, engages in developing therapeutic monoclonal and bispecific antibodies for the treatment of various diseases. Its drug candidates include antibody-based therapeutics to treat patients with inflammatory, allergic, autoimmune, and other devastating diseases. The company’s clinical development programs CDX-0159, a Phase II monoclonal antibody that binds the receptor tyrosine kinase KIT and inhibits its activity. It has research collaboration and license agreements with Yale University. The company was incorporated in 1983 and is headquartered in Hampton, New Jersey.