Evotec (NASDAQ:EVO – Get Free Report) and ProPhase Labs (NASDAQ:PRPH – Get Free Report) 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, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Profitability
This table compares Evotec and ProPhase Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evotec | -21.24% | -18.20% | -8.58% |
| ProPhase Labs | -825.01% | -482.05% | -88.90% |
Insider and Institutional Ownership
5.8% of Evotec shares are held by institutional investors. Comparatively, 9.4% of ProPhase Labs shares are held by institutional investors. 9.6% of ProPhase Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evotec | 1 | 1 | 3 | 0 | 2.40 |
| ProPhase Labs | 1 | 0 | 0 | 0 | 1.00 |
Evotec currently has a consensus target price of $7.00, indicating a potential upside of 180.00%. Given Evotec’s stronger consensus rating and higher probable upside, analysts clearly believe Evotec is more favorable than ProPhase Labs.
Risk and Volatility
Evotec has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, ProPhase Labs has a beta of -0.52, meaning that its stock price is 152% less volatile than the S&P 500.
Valuation and Earnings
This table compares Evotec and ProPhase Labs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evotec | $862.40 million | 1.03 | -$212.18 million | N/A | N/A |
| ProPhase Labs | $5.06 million | 0.11 | -$53.36 million | ($3.90) | -0.02 |
ProPhase Labs has lower revenue, but higher earnings than Evotec.
Summary
Evotec beats ProPhase Labs on 9 of the 12 factors compared between the two stocks.
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.
About ProPhase Labs
ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.
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