Cerus (NASDAQ:CERS) and Demant A/S (OTCMKTS:WILLF) Financial Contrast

Cerus (NASDAQ:CERS) and Demant A/S (OTCMKTS:WILLF) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cerus and Demant A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cerus	0	1	2	0	2.67
Demant A/S	0	0	0	0	N/A

Cerus presently has a consensus target price of $3.83, suggesting a potential upside of 69.62%. Given Cerus’ higher probable upside, equities research analysts clearly believe Cerus is more favorable than Demant A/S.

Valuation & Earnings

This table compares Cerus and Demant A/S’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cerus	$169.98 million	2.46	-$37.49 million	($0.17)	-13.29
Demant A/S	N/A	N/A	N/A	$23.08	1.85

Demant A/S has lower revenue, but higher earnings than Cerus. Cerus is trading at a lower price-to-earnings ratio than Demant A/S, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

78.4% of Cerus shares are held by institutional investors. Comparatively, 13.6% of Demant A/S shares are held by institutional investors. 3.4% of Cerus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Cerus and Demant A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cerus	-14.15%	-44.27%	-11.54%
Demant A/S	N/A	N/A	N/A

About Cerus

Cerus Corporation operates as a biomedical products company. The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced. It sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was incorporated in 1991 and is headquartered in Concord, California.

About Demant A/S

Demant A/S operates as a hearing healthcare and audio technology company in Europe, North America, the Asia Pacific, Asia, and internationally. It operates through two segments: Hearing Healthcare and Communications. The Hearing Healthcare segment is involved in the manufacturing, servicing, and sale of hearing aids, and diagnostic products and services. The Communications segment provides headsets and solutions for the professional call centers, office markets, and gaming markets under the EPOS brand name. The company was formerly known as William Demant Holding A/S and changed its name to Demant A/S in March 2019. Demant A/S was founded in 1904 and is headquartered in Smørum, Denmark.