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

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

Risk and Volatility

Evotec has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evotec	$572.16 million	1.10	$7.14 million	$0.41	4.66
Ginkgo Bioworks	$170.15 million	3.10	-$312.76 million	($5.36)	-1.51

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.

Insider and Institutional 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Evotec and Ginkgo Bioworks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evotec	0	0	0	0	0.00
Ginkgo Bioworks	2	0	1	0	1.67

Ginkgo Bioworks has a consensus price target of $8.50, suggesting a potential upside of 5.26%. Given Ginkgo Bioworks’ stronger consensus rating and higher probable upside, analysts clearly believe Ginkgo Bioworks is more favorable than Evotec.

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.

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.