Financial Contrast: ShangPharma (NYSE:SHP) & Codexis (CDXS)

ShangPharma (NYSE: SHP) and Codexis (NASDAQ:CDXS) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Insider and Institutional Ownership

65.9% 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares ShangPharma and Codexis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ShangPharma N/A N/A N/A
Codexis -76.37% -140.02% -73.00%

Earnings & Valuation

This table compares ShangPharma and Codexis’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ShangPharma N/A N/A N/A $0.32 N/A
Codexis $48.84 million 8.46 -$8.55 million ($0.65) -13.15

ShangPharma has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ShangPharma and Codexis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ShangPharma 0 0 0 0 N/A
Codexis 0 0 2 0 3.00

Codexis has a consensus price target of $9.75, suggesting a potential upside of 14.04%.

Summary

ShangPharma beats Codexis on 5 of the 9 factors compared between the two stocks.

About ShangPharma

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.

About Codexis

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.

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