Oncocyte (NASDAQ:IMDX) versus Emergent Biosolutions (NYSE:EBS) Financial Survey

Oncocyte (NASDAQ:IMDX) and Emergent Biosolutions (NYSE:EBS) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Oncocyte and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oncocyte	-2,955.63%	N/A	-107.52%
Emergent Biosolutions	-22.95%	16.35%	6.17%

Analyst Recommendations

This is a breakdown of current ratings for Oncocyte and Emergent Biosolutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oncocyte	1	0	2	0	2.33
Emergent Biosolutions	2	1	3	0	2.17

Oncocyte currently has a consensus target price of $10.50, indicating a potential upside of 153.62%. Emergent Biosolutions has a consensus target price of $10.00, indicating a potential upside of 48.17%. Given Oncocyte’s stronger consensus rating and higher probable upside, analysts plainly believe Oncocyte is more favorable than Emergent Biosolutions.

Volatility and Risk

Oncocyte has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500.

Earnings and Valuation

This table compares Oncocyte and Emergent Biosolutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oncocyte	$4.05 million	33.45	-$50.22 million	($1.49)	-2.78
Emergent Biosolutions	$742.90 million	0.47	$52.60 million	($3.55)	-1.90

Emergent Biosolutions has higher revenue and earnings than Oncocyte. Oncocyte is trading at a lower price-to-earnings ratio than Emergent Biosolutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

55.3% of Oncocyte shares are owned by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are owned by institutional investors. 2.2% of Oncocyte shares are owned by company insiders. Comparatively, 6.0% of Emergent Biosolutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Emergent Biosolutions beats Oncocyte on 10 of the 14 factors compared between the two stocks.

About Oncocyte

OncoCyte Corporation, a molecular diagnostics company, researches, develops, and commercializes proprietary laboratory-developed tests for the detection of cancer in the United States and internationally. The company offers DetermaRx, a molecular test for early-stage adenocarcinoma of the lung; and DetermaIO, a proprietary gene expression assay. It also provides biomarker discovery testing, assay design and development, and clinical trial support services, as well as various biomarker tests for pharmaceutical companies. The company has a collaboration agreement with Life Technologies Corporation to develop and collaborate in the commercialization of Oncomine Comprehensive Assay Plus and Determa IO assay for use with Ion Torrent Genexus integrated sequencer and purification system. OncoCyte Corporation was incorporated in 2009 and is based in Irvine, California.

About Emergent Biosolutions

Emergent BioSolutions Inc., a life sciences company, provides preparedness and response solutions for accidental, deliberate, and naturally occurring public health threats in the United States. The company offers NARCAN Nasal Spray for the emergency treatment of known or suspected opioid overdose; Vaxchora vaccine for the prevention of cholera; Vivotif vaccine for oral administration for the prevention of typhoid fever; Anthrasil for the treatment of inhalational anthrax; BioThrax, an anthrax vaccine; CYFENDUS for post-exposure prophylaxis of disease following suspected or confirmed exposure to Bacillus anthracis; and Raxibacumab injection for the treatment and prophylaxis of inhalational anthrax. It also provides ACAM2000, a smallpox vaccine; CNJ-016 to address complications from smallpox vaccination; TEMBEXA for the treatment of smallpox disease caused by variola virus in adult and pediatric patients; BAT for the treatment of symptomatic botulism; Ebanga for the treatment of Ebola; Reactive Skin Decontamination Lotion Kit to remove or neutralize chemical warfare agents from the skin; Trobigard, a atropine sulfate obidoxime chloride auto-injector. In addition, the company is developing CGRD-001 for the treatment of poisoning by organophosphorus nerve agents or organophosphorus compounds; EBS-LASV to prevent Lassa fever; EBS-MARV to prevent Marburg virus disease; EBS-SUDV to prevent Sudan virus disease; Pan-Ebola mAbs for the treatment of ebola virus; SIAN Antidote for initial treatment of certain or suspected acute cyanide poisoning; UniFlu for immunity against influenza A and B viruses; and WEVEE-VLP for equine encephalitis virus infections. Further, it provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.