Critical Review: CERo Therapeutics (NASDAQ:CERO) and Gilead Sciences (NASDAQ:GILD)

CERo Therapeutics (NASDAQ:CERO) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

29.6% of CERo Therapeutics shares are held by institutional investors. Comparatively, 83.7% of Gilead Sciences shares are held by institutional investors. 15.8% of CERo Therapeutics shares are held by company insiders. Comparatively, 0.2% of Gilead Sciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares CERo Therapeutics and Gilead Sciences’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CERo Therapeutics	N/A	N/A	-$2.54 million	N/A	N/A
Gilead Sciences	$27.12 billion	3.57	$5.67 billion	$0.36	215.92

Gilead Sciences has higher revenue and earnings than CERo Therapeutics.

Profitability

This table compares CERo Therapeutics and Gilead Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CERo Therapeutics	N/A	N/A	-23.86%
Gilead Sciences	1.76%	24.34%	8.36%

Analyst Ratings

This is a breakdown of current recommendations for CERo Therapeutics and Gilead Sciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CERo Therapeutics	0	0	0	0	N/A
Gilead Sciences	0	12	6	0	2.33

Gilead Sciences has a consensus price target of $81.81, suggesting a potential upside of 5.25%. Given Gilead Sciences’ higher possible upside, analysts clearly believe Gilead Sciences is more favorable than CERo Therapeutics.

Volatility and Risk

CERo Therapeutics has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Summary

Gilead Sciences beats CERo Therapeutics on 9 of the 10 factors compared between the two stocks.

About CERo Therapeutics

CERo Therapeutics Holdings, Inc., an immunotherapy company, focuses on advancing the development of engineered T cell therapeutics for the treatment of cancer. Its lead program in hematologic malignancies targets an Eat Me signal upregulated on B cell and myeloid tumors. The company is based in South San Francisco, California.

About Gilead Sciences

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.