Reviewing Codexis (CDXS) and Covance (CVD)
Codexis (NASDAQ: CDXS) and Covance (NYSE:CVD) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Earnings & Valuation
This table compares Codexis and Covance’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Codexis||$43.16 million||8.40||-$15.16 million||($0.41)||-18.29|
Covance has higher revenue, but lower earnings than Codexis.
This is a summary of recent ratings and price targets for Codexis and Covance, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Codexis currently has a consensus price target of $7.81, indicating a potential upside of 4.17%. Given Codexis’ higher probable upside, research analysts clearly believe Codexis is more favorable than Covance.
This table compares Codexis and Covance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
63.6% of Codexis shares are owned by institutional investors. 9.8% of Codexis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Codexis beats Covance on 5 of the 8 factors compared between the two stocks.
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.
Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.
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