Codexis (NASDAQ: CDXS) and Oncobiologics (NYSE:ONS) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Codexis and Oncobiologics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Codexis 0 1 3 0 2.75
Oncobiologics 0 1 1 0 2.50

Codexis currently has a consensus target price of $7.81, indicating a potential upside of 18.37%. Oncobiologics has a consensus target price of $9.00, indicating a potential upside of 581.82%. Given Oncobiologics’ higher possible upside, analysts plainly believe Oncobiologics is more favorable than Codexis.

Earnings and Valuation

This table compares Codexis and Oncobiologics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Codexis $43.16 million 7.39 -$15.16 million ($0.41) -16.10
Oncobiologics $1.40 million 23.27 -$41.02 million N/A N/A

Codexis has higher revenue and earnings than Oncobiologics.

Profitability

This table compares Codexis and Oncobiologics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Codexis -40.70% -83.39% -45.44%
Oncobiologics -1,757.25% N/A -123.55%

Institutional & Insider Ownership

63.6% of Codexis shares are held by institutional investors. 9.8% of Codexis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Codexis beats Oncobiologics on 8 of the 11 factors compared between the two stocks.

About Codexis

Codexis, Inc. is a developer of biocatalysts for the pharmaceutical and fine chemicals markets. The Company’s CodeEvolver protein engineering technology platform, which introduces genetic mutations into genes in order to give rise to changes in the enzymes that they produce, overcomes many of the limitations, allowing customers to evolve and optimize biocatalysts to perform specific and desired chemical reactions at commercial scale. The Company’s pharmaceutical products include enzymes, pharmaceutical intermediates, active pharmaceutical ingredients (APIs) and Codex Biocatalyst Panels and Kits. The fine chemicals market consists of several market verticals, including food and food ingredients, animal feed, flavors and fragrances, and agricultural chemicals. The Company also uses its technology to develop an early stage, enzyme therapeutic product candidate for the treatment of phenylketonuria (PKU) in humans through oral administration.

About Oncobiologics

Oncobiologics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing, manufacturing and commercializing biosimilar therapeutics. It is focused on monoclonal antibodies (mAbs) in the disease areas of immunology and oncology. The Company offers BioSymphony Platform. The Company has identified approximately eight biosimilar product candidates, of which two product candidates are ONS-3010 and ONS-1045. ONS-3010 is an adalimumab (Humira) biosimilar. The Company has initiated Phase III preparatory activities for ONS-3010. Its second product candidate, ONS-1045, is a bevacizumab (Avastin) biosimilar. The Company’s other preclinical product candidate, ONS-1050, a trastuzumab (Herceptin) biosimilar, interferes with the human epidermal growth factor receptor 2 (HER2). ONS-4010 is a biosimilar to denosumab (Prolia/Xgeva), which is a human mAb. Its other biosimilar product, ONS-1055, is a biosimilar to cetuximab (Erbitux).

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