Critical Review: Ginkgo Bioworks (NYSE:DNA) & VectivBio (NASDAQ:VECT)

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

Institutional and Insider Ownership

78.6% of Ginkgo Bioworks shares are owned by institutional investors. 9.7% of VectivBio shares are owned by company insiders. Comparatively, 15.1% of Ginkgo Bioworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VectivBio	N/A	N/A	N/A
Ginkgo Bioworks	-355.08%	-48.23%	-31.35%

Earnings & Valuation

This table compares VectivBio and Ginkgo Bioworks’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VectivBio	$27.34 million	20.97	-$93.74 million	N/A	N/A
Ginkgo Bioworks	$251.46 million	8.46	-$892.87 million	($0.47)	-2.10

VectivBio has higher earnings, but lower revenue than Ginkgo Bioworks.

Volatility & Risk

VectivBio has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for VectivBio and Ginkgo Bioworks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VectivBio	0	2	0	0	2.00
Ginkgo Bioworks	1	3	1	0	2.00

Ginkgo Bioworks has a consensus target price of $2.20, suggesting a potential upside of 122.72%. Given Ginkgo Bioworks’ higher probable upside, analysts plainly believe Ginkgo Bioworks is more favorable than VectivBio.

Summary

Ginkgo Bioworks beats VectivBio on 6 of the 11 factors compared between the two stocks.

About VectivBio

VectivBio Holding AG, a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for treatments of severe rare conditions. It develops apraglutide, a long-acting synthetic peptide analog of glucagon-like peptide-2 that is in Phase III clinical trial for the treatment of patients with short bowel syndrome-intestinal failure (SBS-IF), as well as apraglutide is in Phase II clinical trial for SBS-IF in patients with colon-in-continuity anatomy. The company is also developing apraglutide, which is in Phase II clinical trial for patients with steroid-refractory gastrointestinal acute versus host disease (aGvHD). VectivBio Holding AG was incorporated in 2019 and is headquartered in Basel, Switzerland. As of June 29, 2023, VectivBio Holding AG operates as a subsidiary of Ironwood Pharmaceuticals, Inc.

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.