Head-To-Head Review: IQVIA (NYSE:IQV) and Ginkgo Bioworks (NYSE:DNA)

Ginkgo Bioworks (NYSE:DNA) and IQVIA (NYSE:IQV) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Ginkgo Bioworks and IQVIA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ginkgo Bioworks	$130.75 million	5.32	-$312.76 million	($4.20)	-2.46
IQVIA	$17.31 billion	2.62	$1.36 billion	$8.23	33.38

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

Insider & Institutional Ownership

78.6% of Ginkgo Bioworks shares are owned by institutional investors. Comparatively, 89.6% of IQVIA shares are owned by institutional investors. 12.7% of Ginkgo Bioworks shares are owned by company insiders. Comparatively, 1.7% of IQVIA 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.

Volatility & Risk

Ginkgo Bioworks has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, IQVIA has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Ginkgo Bioworks and IQVIA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ginkgo Bioworks	2	2	0	0	1.50
IQVIA	1	2	16	2	2.90

Ginkgo Bioworks presently has a consensus price target of $7.00, suggesting a potential downside of 32.22%. IQVIA has a consensus price target of $294.21, suggesting a potential upside of 7.09%. Given IQVIA’s stronger consensus rating and higher possible upside, analysts clearly believe IQVIA is more favorable than Ginkgo Bioworks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ginkgo Bioworks	-249.20%	-56.97%	-24.60%
IQVIA	8.05%	30.02%	6.52%

Summary

IQVIA beats Ginkgo Bioworks on 12 of the 15 factors compared between the two stocks.

About Ginkgo Bioworks

Ginkgo Bioworks is a biotechnology company that develops and engineers microorganisms and other cells for use in commercial products. Its platform combines biological research, automation, and software to help customers design, build, and test organisms with desired characteristics. The company provides cell-engineering services and capabilities to organizations in areas including pharmaceuticals, agriculture, food, and industrial chemicals. Its work can include developing and optimizing microbial strains and supporting the production of ingredients and other materials.

About IQVIA

IQVIA Holdings Inc. provides clinical research services, healthcare data and analytics, and technology solutions to pharmaceutical, biotechnology, medical-device, and other healthcare organizations. Its services support the development and commercialization of medicines and other healthcare products. The company’s offerings include clinical trial planning and management, real-world data and evidence, consulting, and software and technology platforms for life sciences research and commercial operations.