Mesoblast (NASDAQ:MESO) versus Scinai Immunotherapeutics (NASDAQ:SCNI) Critical Review

Scinai Immunotherapeutics (NASDAQ:SCNI) and Mesoblast (NASDAQ:MESO) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Volatility and Risk

Scinai Immunotherapeutics has a beta of 2.48, meaning that its stock price is 148% more volatile than the S&P 500. Comparatively, Mesoblast has a beta of 3.47, meaning that its stock price is 247% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Scinai Immunotherapeutics and Mesoblast, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scinai Immunotherapeutics	0	0	0	0	N/A
Mesoblast	0	0	3	0	3.00

Mesoblast has a consensus price target of $11.00, suggesting a potential upside of 60.58%. Given Mesoblast’s higher probable upside, analysts clearly believe Mesoblast is more favorable than Scinai Immunotherapeutics.

Insider & Institutional Ownership

58.4% of Scinai Immunotherapeutics shares are held by institutional investors. Comparatively, 1.4% of Mesoblast shares are held by institutional investors. 60.9% of Scinai Immunotherapeutics shares are held by insiders. Comparatively, 18.8% of Mesoblast 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.

Earnings and Valuation

This table compares Scinai Immunotherapeutics and Mesoblast”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scinai Immunotherapeutics	$284,000.00	5.82	-$6.50 million	($261.70)	-0.01
Mesoblast	$5.90 million	132.52	-$87.96 million	($1.12)	-6.12

Scinai Immunotherapeutics has higher earnings, but lower revenue than Mesoblast. Mesoblast is trading at a lower price-to-earnings ratio than Scinai Immunotherapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Scinai Immunotherapeutics and Mesoblast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scinai Immunotherapeutics	N/A	N/A	-107.47%
Mesoblast	N/A	N/A	N/A

Summary

Mesoblast beats Scinai Immunotherapeutics on 7 of the 11 factors compared between the two stocks.

About Scinai Immunotherapeutics

Scinai Immunotherapeutics Ltd., a development stage biopharmaceutical company, focuses on developing, manufacturing, and commercializing products for the prevention and treatment of infectious and autoimmune diseases in Israel. It has licensing and collaboration agreement with Max Planck Society and University Medical Center Göttingen for the development and commercialization of COVID-19 nanosized antibody (NanoAb); and development and commercialization of NanoAbs for various other disease indications. The company was formerly known as BiondVax Pharmaceuticals Ltd. and changed its name to Scinai Immunotherapeutics Ltd. in September 2023. Scinai Immunotherapeutics Ltd. was incorporated in 2003 and is headquartered in Jerusalem, Israel.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.