Financial Survey: Alterity Therapeutics (NASDAQ:ATHE) and Mesoblast (NASDAQ:MESO)

Alterity Therapeutics (NASDAQ:ATHE) and Mesoblast (NASDAQ:MESO) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

2.1% of Alterity Therapeutics shares are held by institutional investors. Comparatively, 1.4% of Mesoblast shares are held by institutional investors. 38.8% of Alterity Therapeutics shares are held by company insiders. Comparatively, 18.8% of Mesoblast shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Alterity Therapeutics and Mesoblast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alterity Therapeutics	N/A	N/A	N/A
Mesoblast	N/A	N/A	N/A

Valuation and Earnings

This table compares Alterity Therapeutics and Mesoblast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alterity Therapeutics	N/A	N/A	-$7.87 million	N/A	N/A
Mesoblast	$17.20 million	134.57	-$102.14 million	($1.12)	-16.11

Alterity Therapeutics has higher earnings, but lower revenue than Mesoblast.

Volatility & Risk

Alterity Therapeutics has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, Mesoblast has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alterity Therapeutics and Mesoblast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alterity Therapeutics	1	1	2	0	2.25
Mesoblast	1	1	1	2	2.80

Alterity Therapeutics currently has a consensus target price of $12.00, indicating a potential upside of 289.61%. Mesoblast has a consensus target price of $24.00, indicating a potential upside of 33.04%. Given Alterity Therapeutics’ higher probable upside, equities analysts plainly believe Alterity Therapeutics is more favorable than Mesoblast.

Summary

Alterity Therapeutics beats Mesoblast on 5 of the 9 factors compared between the two stocks.

About Alterity Therapeutics

Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia. The company’s lead drug candidate is ATH434 that is in Phase I clinical trial for the treatment of Parkinson’s disease. It is also developing ATH434-201, which is in Phase II clinical trial to treat multiple system atrophy early stage; ATH434-202 that is in Phase II clinical trial to treat multiple system atrophy advance; and PBT2 that has completed Phase 2a clinical trial to treat Alzheimer’s disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.