Critical Analysis: Pharming Group (NASDAQ:PHAR) vs. Dyadic International (NASDAQ:DYAI)

Dyadic International (NASDAQ:DYAI) and Pharming Group (NASDAQ:PHAR) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Dyadic International and Pharming Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dyadic International	1	0	1	0	2.00
Pharming Group	2	0	3	0	2.20

Dyadic International currently has a consensus price target of $3.00, indicating a potential upside of 557.17%. Pharming Group has a consensus price target of $38.67, indicating a potential upside of 300.69%. Given Dyadic International’s higher possible upside, equities research analysts plainly believe Dyadic International is more favorable than Pharming Group.

Profitability

This table compares Dyadic International and Pharming Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dyadic International	-201.43%	-2,920.31%	-84.77%
Pharming Group	2.51%	3.40%	1.90%

Institutional & Insider Ownership

27.9% of Dyadic International shares are held by institutional investors. Comparatively, 0.0% of Pharming Group shares are held by institutional investors. 20.9% of Dyadic International shares are held by insiders. Comparatively, 2.1% of Pharming Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Dyadic International has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Pharming Group has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dyadic International and Pharming Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dyadic International	$3.09 million	5.92	-$7.36 million	($0.23)	-1.98
Pharming Group	$376.13 million	1.82	$2.85 million	$0.12	80.42

Pharming Group has higher revenue and earnings than Dyadic International. Dyadic International is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.

Summary

Pharming Group beats Dyadic International on 9 of the 14 factors compared between the two stocks.

About Dyadic International

Dyadic International, Inc., a biotechnology platform company, develops, produces, and sells enzymes and other proteins in the United States and internationally. It utilizes C1-cell protein production platform based on an industrially proven microorganism (C1) for the development and production of biologic products including enzymes and other proteins for human and animal health. The company offers DYAI-100, SARS-CoV-2-RBD antigen vaccine candidate towards a first-in-human Phase 1 clinical trial to demonstrate the safety in humans of a protein produced using the C1 platform. It has also developed the Dapibus thermophilic, a filamentous fungal-based microbial protein production platform to enable the development and large-scale manufacture of cost-effective proteins, metabolites, and other biologic products for use in non-pharmaceutical applications, including food, nutrition, and wellness. The company has a research and development agreement with VTT Technical Research Centre of Finland, Ltd.; license agreement with South Africa's Rubic One Health; Joint Development Agreement with a Global Food Ingredient Company; and sub-license agreement with Abic Biological Laboratories Ltd., Alphazyme, LLC, and Abic Biological Laboratories Ltd. Dyadic International, Inc. was founded in 1979 and is headquartered in Jupiter, Florida.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.