Reviewing Xeris Biopharma (NASDAQ:XERS) & Evotec (NASDAQ:EVO)

Xeris Biopharma (NASDAQ:XERS) and Evotec (NASDAQ:EVO) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Xeris Biopharma and Evotec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xeris Biopharma	0	1	5	0	2.83
Evotec	0	2	2	0	2.50

Xeris Biopharma currently has a consensus target price of $7.0833, indicating a potential downside of 8.60%. Evotec has a consensus target price of $5.40, indicating a potential upside of 48.35%. Given Evotec’s higher probable upside, analysts clearly believe Evotec is more favorable than Xeris Biopharma.

Profitability

This table compares Xeris Biopharma and Evotec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xeris Biopharma	-13.01%	N/A	-8.00%
Evotec	-20.14%	-16.94%	-8.14%

Risk and Volatility

Xeris Biopharma has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Evotec has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

42.8% of Xeris Biopharma shares are owned by institutional investors. Comparatively, 5.8% of Evotec shares are owned by institutional investors. 4.6% of Xeris Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Xeris Biopharma and Evotec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xeris Biopharma	$203.07 million	6.16	-$54.84 million	($0.21)	-36.90
Evotec	$862.40 million	1.50	-$212.18 million	N/A	N/A

Xeris Biopharma has higher earnings, but lower revenue than Evotec.

Summary

Xeris Biopharma beats Evotec on 9 of the 12 factors compared between the two stocks.

About Xeris Biopharma

Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. The company offers Gvoke, a ready-to-use liquid-stable glucagon for the treatment of severe hypoglycemia pediatric and adult patients; Keveyis, a therapy for the treatment of hyperkalemic, hypokalemic, and related variants of primary periodic paralysis; and Recorlev, a cortisol synthesis inhibitor proved for the treatment of endogenous hypercortisolemia in adult patients with Cushing's syndrome. It is also developing XP-8121, a once-weekly subcutaneous injection of levothyroxine that is in phase I clinical trial for the treatment of hypothyroidism; and non-aqueous XeriSol and XeriJect technologies for various therapies. The company was incorporated in 2005 and is headquartered in Chicago, Illinois.

About Evotec

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as autoimmune diseases, cancer, CNS diseases, diabetes, fibrosis, immunology, infectious diseases, kidney diseases, liver diseases, pain and inflammation, rare diseases, respiratory diseases, tuberculosis, and women’s health. It has collaboration agreements with SK bioscience, JingXin, Carrick Therapeutics, Sernova, Topas Therapeutics, Exscientia, CONBA Group, Centrexion, Sanofi/NIH, Kazia Therapeutics, Bristol Myers Squibb, Topas Therapeutics, Immunitas, Exscientia, and Bayer; and Inserm, the French National Institute of Health and Medical Research, Lille University Hospital, and Inserm Transfert to identify novel therapeutic targets and diagnostic and prognostic markers in obesity and metabolic diseases, as well as collaboration with CHDI Foundation, Inc.; and a strategic partnership with Dewpoint Therapeutics to advance its portfolio targeting biomolecular condensates as a novel domain for therapeutic intervention towards the clinic, as well as research collaboration with Pfizer for metabolic and infectious diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.