Financial Comparison: Equillium (NASDAQ:EQ) versus CSL (OTCMKTS:CSLLY)

CSL (OTCMKTS:CSLLY) and Equillium (NASDAQ:EQ) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Volatility and Risk

CSL has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Equillium has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of CSL shares are held by institutional investors. Comparatively, 27.1% of Equillium shares are held by institutional investors. 30.3% of Equillium shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSL	$14.80 billion	6.01	$2.64 billion	N/A	N/A
Equillium	$36.08 million	0.74	-$13.34 million	($0.14)	-5.36

CSL has higher revenue and earnings than Equillium.

Profitability

This table compares CSL and Equillium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSL	N/A	N/A	N/A
Equillium	-10.05%	-20.68%	-10.77%

Analyst Recommendations

This is a breakdown of current ratings and price targets for CSL and Equillium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSL	0	0	0	1	4.00
Equillium	0	0	1	0	3.00

Equillium has a consensus target price of $5.00, indicating a potential upside of 565.78%. Given Equillium’s higher possible upside, analysts clearly believe Equillium is more favorable than CSL.

Summary

CSL beats Equillium on 8 of the 13 factors compared between the two stocks.

About CSL

CSL Limited researches, develops, manufactures, markets, and distributes biopharmaceutical and vaccines in Australia, the United States, Germany, the United Kingdom, Switzerland, China, Hong Kong, and internationally. The company operates through CSL Behring, CSL Seqirus, and CSL Vifor segments. The CSL Behring segment offers plasma products, gene therapies, and recombinants. The CSL Seqirus segment provides influenza related products and pandemic services to governments. The CSL Vifor segment offers products in the therapeutic areas of iron deficiency and nephrology. The company also licenses CSL intellectual property. CSL Limited was founded in 1916 and is headquartered in Melbourne, Australia.

About Equillium

Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a first-in-class monoclonal antibody that targets the immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase I clinical trial for the treatment of ulcerative colitis; and Phase I clinical trial for the treatment of lupus nephritis. It also develops EQ101 completed phase 1/2 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ302 to treat gastrointestinal indications. In addition, it serves dermatology, gastroenterology, rheumatology, hematology, transplant science, oncology, and pulmonology area. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.