Evotec (NASDAQ:EVO) and Savara (NASDAQ:SVRA) Financial Analysis

Savara (NASDAQ:SVRA) and Evotec (NASDAQ:EVO) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Savara and Evotec”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savara	N/A	N/A	-$95.88 million	($0.53)	-10.89
Evotec	$862.40 million	1.55	-$212.18 million	N/A	N/A

Savara has higher earnings, but lower revenue than Evotec.

Institutional and Insider Ownership

87.9% of Savara shares are owned by institutional investors. Comparatively, 5.8% of Evotec shares are owned by institutional investors. 5.1% of Savara shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Savara and Evotec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savara	1	1	7	1	2.80
Evotec	1	1	2	0	2.25

Savara currently has a consensus price target of $9.13, indicating a potential upside of 58.15%. Evotec has a consensus price target of $7.00, indicating a potential upside of 86.17%. Given Evotec’s higher possible upside, analysts clearly believe Evotec is more favorable than Savara.

Risk and Volatility

Savara has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Evotec has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Savara	N/A	-86.60%	-65.44%
Evotec	-21.24%	-18.20%	-8.58%

Summary

Savara beats Evotec on 7 of the 12 factors compared between the two stocks.

About Savara

Savara Inc., formerly Mast Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the development and commercialization of novel therapies for the treatment of patients with rare respiratory diseases. Its pipeline includes AeroVanc, Molgradex and AIR001. AeroVanc is an inhaled formulation of vancomycin, which the Company is developing for the treatment of persistent methicillin-resistant Staphylococcus aureus, lung infection in cystic fibrosis patients. Molgradex is an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor. It is developing Molgradex for the treatment of autoimmune pulmonary alveolar proteinosis, a rare lung disease. AIR001 is a sodium nitrite solution for inhalation via nebulization. AIR001 is in Phase II clinical development for the treatment of heart failure with preserved ejection fraction, also known as diastolic heart failure or heart failure with preserved systolic function.

About Evotec

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as autoimmune diseases, cancer, CNS diseases, diabetes, fibrosis, immunology, infectious diseases, kidney diseases, liver diseases, pain and inflammation, rare diseases, respiratory diseases, tuberculosis, and women’s health. It has collaboration agreements with SK bioscience, JingXin, Carrick Therapeutics, Sernova, Topas Therapeutics, Exscientia, CONBA Group, Centrexion, Sanofi/NIH, Kazia Therapeutics, Bristol Myers Squibb, Topas Therapeutics, Immunitas, Exscientia, and Bayer; and Inserm, the French National Institute of Health and Medical Research, Lille University Hospital, and Inserm Transfert to identify novel therapeutic targets and diagnostic and prognostic markers in obesity and metabolic diseases, as well as collaboration with CHDI Foundation, Inc.; and a strategic partnership with Dewpoint Therapeutics to advance its portfolio targeting biomolecular condensates as a novel domain for therapeutic intervention towards the clinic, as well as research collaboration with Pfizer for metabolic and infectious diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.