Head to Head Review: Evotec (NASDAQ:EVO) versus ProPhase Labs (NASDAQ:PRPH)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPhase Labs	$5.06 million	0.10	-$53.36 million	($3.90)	-0.02
Evotec	$862.40 million	1.07	-$212.18 million	N/A	N/A

ProPhase Labs has higher earnings, but lower revenue than Evotec.

Insider & Institutional Ownership

9.4% of ProPhase Labs shares are owned by institutional investors. Comparatively, 5.8% of Evotec shares are owned by institutional investors. 9.6% of ProPhase Labs shares are owned by company insiders. Comparatively, 1.0% of Evotec shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ProPhase Labs	-825.01%	-482.05%	-88.90%
Evotec	-21.24%	-18.20%	-8.58%

Analyst Ratings

This is a summary of current recommendations for ProPhase Labs and Evotec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPhase Labs	1	0	0	0	1.00
Evotec	1	1	3	0	2.40

Evotec has a consensus target price of $7.00, suggesting a potential upside of 170.27%. Given Evotec’s stronger consensus rating and higher possible upside, analysts plainly believe Evotec is more favorable than ProPhase Labs.

Volatility & Risk

ProPhase Labs has a beta of -0.52, suggesting that its stock price is 152% less volatile than the S&P 500. Comparatively, Evotec has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.

Summary

Evotec beats ProPhase Labs on 9 of the 12 factors compared between the two stocks.

About ProPhase Labs

ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.

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.