Galecto (NASDAQ:GLTO) vs. Orgenesis (NASDAQ:ORGS) Critical Review

Galecto (NASDAQ:GLTO) and Orgenesis (NASDAQ:ORGS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

14.2% of Galecto shares are owned by institutional investors. Comparatively, 22.6% of Orgenesis shares are owned by institutional investors. 11.9% of Galecto shares are owned by company insiders. Comparatively, 5.7% of Orgenesis shares are owned 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.

Earnings and Valuation

This table compares Galecto and Orgenesis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galecto	N/A	N/A	-$38.35 million	($19.14)	-0.30
Orgenesis	$530,000.00	11.77	-$55.36 million	N/A	N/A

Galecto has higher earnings, but lower revenue than Orgenesis.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Galecto and Orgenesis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galecto	0	0	1	0	3.00
Orgenesis	0	0	0	0	0.00

Galecto presently has a consensus price target of $10.00, suggesting a potential upside of 73.61%. Given Galecto’s stronger consensus rating and higher probable upside, research analysts clearly believe Galecto is more favorable than Orgenesis.

Profitability

This table compares Galecto and Orgenesis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galecto	N/A	-76.96%	-66.59%
Orgenesis	-3,827.81%	N/A	-130.18%

Risk & Volatility

Galecto has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Orgenesis has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Summary

Galecto beats Orgenesis on 7 of the 11 factors compared between the two stocks.

About Galecto

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

About Orgenesis

Orgenesis Inc., a biotech company, focuses on cell and gene therapies worldwide. It operates through two segments, Octomera and Therapies. The company develops a Point of Care (POCare) platform that includes a pipeline of licensed cell based POCare therapies that are processed and produced under closed and automated POCare technology systems across a collaborative POCare network consisting of research institutes and hospitals. Its therapies include autologous; cell-based immunotherapies; and therapeutics for metabolic diseases, anti-viral diseases, and tissue regeneration. The company also provides development services, including regulatory services, pre-clinical studies, intellectual property services, and GMP process translation, as well as support services; hospital services; cell process development services; and distributed cell processing services. The company was formerly known as Business Outsourcing Service, Inc. and changed its name to Orgenesis Inc. in August 2011. Orgenesis Inc. was incorporated in 2008 and is headquartered in Germantown, Maryland.