Comparing Evotec (OTCMKTS:EVTCY) & Champions Oncology (NASDAQ:CSBR)

Champions Oncology (NASDAQ:CSBR) and Evotec (OTCMKTS:EVTCY) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Champions Oncology and Evotec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champions Oncology	1	0	0	0	1.00
Evotec	0	0	0	0	0.00

Profitability

This table compares Champions Oncology and Evotec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champions Oncology	-1.87%	-27.48%	-3.84%
Evotec	20.85%	16.02%	7.81%

Insider and Institutional Ownership

41.3% of Champions Oncology shares are held by institutional investors. 46.4% of Champions Oncology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Champions Oncology and Evotec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champions Oncology	$59.42 million	1.16	-$1.17 million	($0.08)	-62.04
Evotec	$572.16 million	1.11	$7.14 million	$0.41	4.71

Evotec has higher revenue and earnings than Champions Oncology. Champions Oncology is trading at a lower price-to-earnings ratio than Evotec, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Champions Oncology has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Evotec has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

Evotec beats Champions Oncology on 8 of the 12 factors compared between the two stocks.

About Champions Oncology

Champions Oncology, Inc. engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. The company was founded by James M. Martell and David Sidransky on June 4, 1985 and is headquartered in Hackensack, NJ.

About Evotec

Evotec SE engages in the discovery and development of new drugs for pharmaceutical and biotechnology companies. It operates through the following segments: EVT Execute and EVT Innovate. The EVT Execute segment provides stand-alone or integrated drug discovery solutions for collaborators targets and programmers on a typical fee-for-service basis or through a variety of commercial structures, which may include performance-based components, such as milestones and royalties. The EVT Innovate develops drug discovery projects, assets and platforms, both internally or through academic collaborations. The company was founded by Manfred Eigen, Karsten Henco, Ulrich Aldag, Freimut Leidenberger, Heinrich Maria Schulte, Rudolf Rigler, and Charles Weissmann on December 8, 1993 and is headquartered in Hamburg, Germany.