Financial Analysis: Evaxion A/S (NASDAQ:EVAX) versus Pulmonx (NASDAQ:LUNG)

Evaxion A/S (NASDAQ:EVAX) and Pulmonx (NASDAQ:LUNG) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares Evaxion A/S and Pulmonx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evaxion A/S	N/A	-61.43%	-29.14%
Pulmonx	-59.67%	-82.79%	-38.20%

Risk and Volatility

Evaxion A/S has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Institutional and Insider Ownership

11.0% of Evaxion A/S shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 41.6% of Evaxion A/S shares are held by company insiders. Comparatively, 6.8% of Pulmonx shares are held 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Evaxion A/S and Pulmonx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evaxion A/S	1	0	5	0	2.67
Pulmonx	1	3	4	0	2.38

Evaxion A/S currently has a consensus target price of $11.00, indicating a potential upside of 147.19%. Pulmonx has a consensus target price of $5.38, indicating a potential upside of 265.89%. Given Pulmonx’s higher probable upside, analysts clearly believe Pulmonx is more favorable than Evaxion A/S.

Earnings and Valuation

This table compares Evaxion A/S and Pulmonx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evaxion A/S	$7.53 million	4.93	-$7.71 million	($1.32)	-3.37
Pulmonx	$90.50 million	0.69	-$54.00 million	($1.33)	-1.11

Evaxion A/S has higher earnings, but lower revenue than Pulmonx. Evaxion A/S is trading at a lower price-to-earnings ratio than Pulmonx, indicating that it is currently the more affordable of the two stocks.

Summary

Evaxion A/S beats Pulmonx on 9 of the 13 factors compared between the two stocks.

About Evaxion A/S

Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. The company develops EVX-01, which is in phase 2 global multi-center clinical trial for the treatment of metastatic melanoma; EVX-02, a DNA-based vaccine that is in Phase 1/2a trial designed to induce a therapeutic immune response in the adjuvant setting in patients with resected melanoma; and EVX-03, DNA-based cancer vaccine for the treatment of various cancers. Its programs also include some vaccines that are in pre-clinical stage, which includes EVX-B1 for the prevention of S. aureus-induced skin and soft tissue infections in patients undergoing elective abdominal hernia surgery; EVX-B2 to target diseases caused by N. gonorrhoeae; EVX-B3 for eliciting strong humoral antibody and cellular immune response to the bacterial pathogen; and EVX-V1, viral vaccine product candidate for targeting Cytomegalovirus. Evaxion Biotech A/S was incorporated in 2008 and is based in Horsholm, Denmark.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.