Critical Comparison: Evotec (OTCMKTS:EVTCY) & Ginkgo Bioworks (NYSE:DNA)

Ginkgo Bioworks (NYSE:DNA) and Evotec (OTCMKTS:EVTCY) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ginkgo Bioworks and Evotec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ginkgo Bioworks	2	1	0	0	1.33
Evotec	0	0	0	0	0.00

Ginkgo Bioworks currently has a consensus target price of $7.00, indicating a potential downside of 12.01%. Given Ginkgo Bioworks’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ginkgo Bioworks is more favorable than Evotec.

Risk and Volatility

Ginkgo Bioworks has a beta of 1.78, meaning that its share price is 78% more 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.

Earnings & Valuation

This table compares Ginkgo Bioworks and Evotec”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ginkgo Bioworks	$170.15 million	3.05	-$312.76 million	($5.36)	-1.48
Evotec	$572.16 million	1.15	$7.14 million	$0.41	4.88

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

Institutional & Insider Ownership

78.6% of Ginkgo Bioworks shares are owned by institutional investors. 12.7% of Ginkgo Bioworks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ginkgo Bioworks and Evotec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ginkgo Bioworks	-215.41%	-56.08%	-26.06%
Evotec	20.85%	16.02%	7.81%

Summary

Evotec beats Ginkgo Bioworks on 7 of the 13 factors compared between the two stocks.

About Ginkgo Bioworks

Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries. Ginkgo Bioworks Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

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.