Ginkgo Bioworks (NYSE:DNA) & Novavax (NASDAQ:NVAX) Financial Analysis

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

Analyst Ratings

This is a summary of current ratings and price targets for Novavax and Ginkgo Bioworks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novavax	1	2	3	0	2.33
Ginkgo Bioworks	3	1	1	0	1.60

Novavax currently has a consensus target price of $17.83, suggesting a potential upside of 143.62%. Ginkgo Bioworks has a consensus target price of $4.58, suggesting a potential downside of 28.18%. Given Novavax’s stronger consensus rating and higher possible upside, equities analysts plainly believe Novavax is more favorable than Ginkgo Bioworks.

Earnings & Valuation

This table compares Novavax and Ginkgo Bioworks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novavax	$983.71 million	1.19	-$545.06 million	($2.26)	-3.24
Ginkgo Bioworks	$251.46 million	1.41	-$892.87 million	($13.08)	-0.49

Novavax has higher revenue and earnings than Ginkgo Bioworks. Novavax is trading at a lower price-to-earnings ratio than Ginkgo Bioworks, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Novavax has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

53.0% of Novavax shares are held by institutional investors. Comparatively, 78.6% of Ginkgo Bioworks shares are held by institutional investors. 1.0% of Novavax shares are held by company insiders. Comparatively, 9.7% of Ginkgo Bioworks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Novavax and Ginkgo Bioworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novavax	-32.18%	N/A	-17.05%
Ginkgo Bioworks	-298.78%	-58.54%	-34.24%

Summary

Novavax beats Ginkgo Bioworks on 10 of the 14 factors compared between the two stocks.

About Novavax

Novavax, Inc., a biotechnology company, that promotes improved health by discovering, developing, and commercializing vaccines to protect against serious infectious diseases. It offers vaccine platform that combines a recombinant protein approach, nanoparticle technology, and its patented Matrix-M adjuvant to enhance the immune response. It focuses on urgent health challenges, which is evaluating vaccines for COVID-19, influenza, and COVID-19 influenza combination. The company is commercializing a COVID-19 vaccine, NVX-CoV2373 under the brand names of Nuvaxovid, Covovax, and Novavax COVID-19 Vaccine, adjuvanted for adult and adolescent populations as a primary series and for both homologous and heterologous booster indications. It is also developing R21/Matrix-M adjuvant malaria vaccine. Novavax, Inc. was incorporated in 1987 and is headquartered in Gaithersburg, Maryland.

About Ginkgo Bioworks

Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries. Ginkgo Bioworks Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.