Codexis (NASDAQ: CDXS) and ShangPharma (NYSE:SHP) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
This is a breakdown of recent ratings for Codexis and ShangPharma, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Codexis and ShangPharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Codexis and ShangPharma’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Codexis||$48.84 million||7.92||-$8.55 million||($0.65)||-12.31|
ShangPharma has lower revenue, but higher earnings than Codexis. Codexis is trading at a lower price-to-earnings ratio than ShangPharma, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
65.7% of Codexis shares are held by institutional investors. 9.8% of Codexis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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.
ShangPharma Corporation (ShangPharma) is a China-based holding company. The Company is a pharmaceutical and biotechnology research and development (R&D) outsourcing company. It provides a range of high-quality, integrated services across the drug discovery and development process to international and Chinese pharmaceutical and biotechnology companies. Its services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services. It has a diversified and loyal global customer base. In March 2013, the Company completed the merger contemplated by the previously announced Agreement and Plan of Merger (the Merger Agreement), by and among the Company, ShangPharma Holdings Limited (Holdings), ShangPharma Parent Limited (Parent) and ShangPharma Merger Sub Limited (Merger Sub). As a result of the merger, the Company became a wholly owned subsidiary of Parent.
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