Liquidia Technologies (NASDAQ:LQDA) and Cytosorbents (NASDAQ:CTSO) Critical Analysis

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Liquidia Technologies (NASDAQ:LQDA) and Cytosorbents (NASDAQ:CTSO) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Liquidia Technologies and Cytosorbents’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liquidia Technologies $2.71 million 44.89 -$53.14 million ($7.51) -0.87
Cytosorbents $22.50 million 6.64 -$17.21 million ($0.56) -8.23

Cytosorbents has higher revenue and earnings than Liquidia Technologies. Cytosorbents is trading at a lower price-to-earnings ratio than Liquidia Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

56.4% of Liquidia Technologies shares are held by institutional investors. Comparatively, 26.1% of Cytosorbents shares are held by institutional investors. 4.3% of Liquidia Technologies shares are held by insiders. Comparatively, 5.6% of Cytosorbents shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Liquidia Technologies has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Cytosorbents has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Profitability

This table compares Liquidia Technologies and Cytosorbents’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidia Technologies N/A -158.95% -71.27%
Cytosorbents -87.79% -165.00% -68.54%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Liquidia Technologies and Cytosorbents, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidia Technologies 0 0 1 0 3.00
Cytosorbents 0 0 3 0 3.00

Liquidia Technologies presently has a consensus price target of $37.00, suggesting a potential upside of 467.48%. Cytosorbents has a consensus price target of $11.00, suggesting a potential upside of 138.61%. Given Liquidia Technologies’ higher possible upside, analysts plainly believe Liquidia Technologies is more favorable than Cytosorbents.

Summary

Cytosorbents beats Liquidia Technologies on 7 of the 13 factors compared between the two stocks.

About Liquidia Technologies

Liquidia Technologies, Inc., a late-stage clinical biopharmaceutical company, focuses on the development and commercialization of human therapeutics. Its lead product candidate, LIQ861, an inhaled dry powder formulation of treprostinil that is in Phase III clinical trials used for the treatment of pulmonary arterial hypertension. The company is also developing LIQ865, which completed Phase 1 clinical trials for the treatment of local post-operative pain. It has collaboration agreements with GlaxoSmithKline plc and the University of North Carolina. Liquidia Technologies, Inc. was founded in 2004 and is headquartered in Morrisville, North Carolina.

About Cytosorbents

Cytosorbents Corporation, a critical care focused immunotherapy company, engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology worldwide. The company's flagship product is CytoSorb device, an extracorporeal cytokine filter designed for the adjunctive therapy in the treatment of sepsis; adjunctive therapy in other critical care applications; prevention and treatment of post-operative complications of cardiopulmonary bypass surgery; and prevention and treatment of organ dysfunction in brain-dead organ donors to increase the number and quality of viable organs harvested from donors. It also provides VetResQ device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. In addition, the company develops CytoSorb-XL device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients; K+ontrol, a development stage blood purification technology; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. Further, it is involved in the development of BetaSorb device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; and DrugSorb, an extracorporeal hemoperfusion cartridge designed to remove toxic chemicals from the blood. The company was formerly known as MedaSorb Technologies Corporation and changed its name to CytoSorbents Corporation in May 2010. The company was founded in 1997 and is based in Monmouth Junction, New Jersey.

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