Catalent (NYSE:CTLT) versus Satsuma Pharmaceuticals (NASDAQ:STSA) Head to Head Comparison

Satsuma Pharmaceuticals (NASDAQ:STSA – Get Rating) and Catalent (NYSE:CTLT – Get Rating) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Satsuma Pharmaceuticals and Catalent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Satsuma Pharmaceuticals	0	4	1	0	2.20
Catalent	1	5	4	0	2.30

Satsuma Pharmaceuticals currently has a consensus target price of $7.40, indicating a potential upside of 598.11%. Catalent has a consensus target price of $74.80, indicating a potential upside of 101.24%. Given Satsuma Pharmaceuticals’ higher possible upside, analysts clearly believe Satsuma Pharmaceuticals is more favorable than Catalent.

Risk & Volatility

Satsuma Pharmaceuticals has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Catalent has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

93.3% of Satsuma Pharmaceuticals shares are held by institutional investors. Comparatively, 99.4% of Catalent shares are held by institutional investors. 31.2% of Satsuma Pharmaceuticals shares are held by insiders. Comparatively, 0.6% of Catalent 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.

Profitability

This table compares Satsuma Pharmaceuticals and Catalent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Satsuma Pharmaceuticals	N/A	-115.24%	-102.26%
Catalent	8.62%	11.40%	5.14%

Earnings & Valuation

This table compares Satsuma Pharmaceuticals and Catalent’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Satsuma Pharmaceuticals	N/A	N/A	-$70.06 million	($2.01)	-0.53
Catalent	$4.83 billion	1.39	$503.00 million	$2.26	16.45

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

Summary

Catalent beats Satsuma Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

About Satsuma Pharmaceuticals

(Get Rating)

Satsuma Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, developing novel therapeutic products for the acute treatment of migraines. The company's lead product candidate is STS101, a drug-device combination of a proprietary dry-powder formulation of dihydroergotamine mesylate, which is in SUMMIT Phase 3 efficacy trials and can be self-administered with proprietary pre-filled, single-use, and nasal delivery device. Satsuma Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in South San Francisco, California.

About Catalent

(Get Rating)

Catalent, Inc. is a holding company, which engages in the provision of delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products. It operates through the following segments: Softgel and Oral Technologies, Biologics, Oral and Specialty Delivery, and Clinical Supply Services. The Softgel and Oral Technologies segment offers formulation, development, and manufacturing services for soft capsules or softgels, as well as large-scale production of oral solid dose forms for pharmaceutical and consumer health markets and supporting ancillary services. The Biologics segment develops and produces biologic cell-line, cell therapy, and viral vector gene therapy, formulation for parenteral dose forms, which include prefilled syringes, vials, and cartridges, and analytical development and testing services for large molecules. The Oral and Specialty Delivery segment is composed of advanced formulation of a range of technologies along with integrated downstream clinical development and commercial supply solutions. The Clinical Supply Services segment is involved in packaging, storage, distribution, and inventory manag