Critical Analysis: Fulgent Genetics (NASDAQ:FLGT) versus Evaxion A/S (NASDAQ:EVAX)

Fulgent Genetics (NASDAQ:FLGT) and Evaxion A/S (NASDAQ:EVAX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Fulgent Genetics and Evaxion A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulgent Genetics	-23.04%	-3.24%	-2.97%
Evaxion A/S	N/A	-73.56%	-37.45%

Earnings and Valuation

This table compares Fulgent Genetics and Evaxion A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulgent Genetics	$322.67 million	1.60	-$60.51 million	($2.39)	-7.59
Evaxion A/S	$7.53 million	3.92	-$7.71 million	($1.47)	-2.41

Evaxion A/S has lower revenue, but higher earnings than Fulgent Genetics. Fulgent Genetics is trading at a lower price-to-earnings ratio than Evaxion A/S, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fulgent Genetics has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Evaxion A/S has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Institutional and Insider Ownership

48.1% of Fulgent Genetics shares are held by institutional investors. Comparatively, 11.0% of Evaxion A/S shares are held by institutional investors. 36.2% of Fulgent Genetics shares are held by company insiders. Comparatively, 41.6% of Evaxion A/S shares are held by company 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 Recommendations

This is a breakdown of current recommendations for Fulgent Genetics and Evaxion A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulgent Genetics	1	2	2	0	2.20
Evaxion A/S	1	0	5	0	2.67

Fulgent Genetics presently has a consensus price target of $27.00, indicating a potential upside of 48.84%. Evaxion A/S has a consensus price target of $11.00, indicating a potential upside of 210.73%. Given Evaxion A/S’s stronger consensus rating and higher possible upside, analysts clearly believe Evaxion A/S is more favorable than Fulgent Genetics.

Summary

Evaxion A/S beats Fulgent Genetics on 9 of the 14 factors compared between the two stocks.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.

About Evaxion A/S

Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. The company develops EVX-01, which is in phase 2 global multi-center clinical trial for the treatment of metastatic melanoma; EVX-02, a DNA-based vaccine that is in Phase 1/2a trial designed to induce a therapeutic immune response in the adjuvant setting in patients with resected melanoma; and EVX-03, DNA-based cancer vaccine for the treatment of various cancers. Its programs also include some vaccines that are in pre-clinical stage, which includes EVX-B1 for the prevention of S. aureus-induced skin and soft tissue infections in patients undergoing elective abdominal hernia surgery; EVX-B2 to target diseases caused by N. gonorrhoeae; EVX-B3 for eliciting strong humoral antibody and cellular immune response to the bacterial pathogen; and EVX-V1, viral vaccine product candidate for targeting Cytomegalovirus. Evaxion Biotech A/S was incorporated in 2008 and is based in Horsholm, Denmark.