Head-To-Head Contrast: Illumina (NASDAQ:ILMN) and Codexis (NASDAQ:CDXS)

Codexis (NASDAQ:CDXS) and Illumina (NASDAQ:ILMN) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Codexis and Illumina, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codexis	1	1	2	0	2.25
Illumina	3	6	10	0	2.37

Codexis currently has a consensus target price of $6.50, indicating a potential upside of 501.85%. Illumina has a consensus target price of $244.24, indicating a potential upside of 14.59%. Given Codexis’ higher probable upside, analysts plainly believe Codexis is more favorable than Illumina.

Insider and Institutional Ownership

78.5% of Codexis shares are held by institutional investors. Comparatively, 89.4% of Illumina shares are held by institutional investors. 3.5% of Codexis shares are held by insiders. Comparatively, 2.9% of Illumina shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Codexis and Illumina”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codexis	$70.39 million	1.68	-$43.97 million	($0.34)	-3.18
Illumina	$4.34 billion	7.42	$850.00 million	$5.81	36.68

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

Risk and Volatility

Codexis has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500. Comparatively, Illumina has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Codexis	-39.55%	-74.36%	-23.58%
Illumina	19.72%	28.38%	12.11%

Summary

Illumina beats Codexis on 11 of the 14 factors compared between the two stocks.

About Codexis

Codexis, Inc. discovers, develops, and sells enzymes and other proteins. The company operates through two segments, Performance Enzymes and Novel Biotherapeutics. It offers biocatalyst products and services. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver, a technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used for molecular biology and in vitro diagnostic enzymes. It has a collaboration agreement with Nestlé Health Science to develop CDX-7108 for the treatment of exocrine pancreatic insufficiency. The company sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.

About Illumina

Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services; and Galleri, a multi-cancer early detection test. In addition, the company is developing solutions to help accelerate cancer diagnoses, blood-based detection for minimal residual disease, and other post-diagnostic applications. The company serves genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. It markets and distributes its products directly to customers, as well as through life-science distributors. Illumina, Inc. was incorporated in 1998 and is based in San Diego, California.