Critical Review: Codexis (NASDAQ:CDXS) versus Golden Arrow Merger (NASDAQ:GAMC)

Codexis (NASDAQ:CDXS) and Golden Arrow Merger (NASDAQ:GAMC) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Earnings and Valuation

This table compares Codexis and Golden Arrow Merger’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codexis	$70.14 million	2.81	-$76.24 million	($1.11)	-2.52
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A

Golden Arrow Merger has lower revenue, but higher earnings than Codexis.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Codexis and Golden Arrow Merger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codexis	0	2	4	0	2.67
Golden Arrow Merger	0	0	0	0	N/A

Codexis presently has a consensus target price of $6.80, indicating a potential upside of 142.86%. Given Codexis’ higher probable upside, equities analysts plainly believe Codexis is more favorable than Golden Arrow Merger.

Insider and Institutional Ownership

78.5% of Codexis shares are held by institutional investors. Comparatively, 5.5% of Golden Arrow Merger shares are held by institutional investors. 6.3% of Codexis shares are held by company insiders. Comparatively, 77.4% of Golden Arrow Merger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Codexis and Golden Arrow Merger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codexis	-108.69%	-47.58%	-28.46%
Golden Arrow Merger	N/A	-23.97%	-7.91%

Summary

Golden Arrow Merger beats Codexis on 5 of the 9 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 Golden Arrow Merger

Golden Arrow Merger Corp. does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It focuses on acquiring companies in the healthcare and healthcare-related infrastructure industries in the United States and other developed countries. The company was incorporated in 2020 and is based in New York, New York. Golden Arrow Merger Corp. is a subsidiary of Golden Arrow Sponsor, LLC.