Evotec (NASDAQ:EVO – Get Free Report) and Seer (NASDAQ:SEER – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Evotec and Seer, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evotec | 1 | 2 | 2 | 0 | 2.20 |
| Seer | 1 | 0 | 0 | 2 | 3.00 |
Evotec presently has a consensus target price of $3.00, indicating a potential upside of 55.44%. Seer has a consensus target price of $4.00, indicating a potential upside of 97.04%. Given Seer’s stronger consensus rating and higher possible upside, analysts plainly believe Seer is more favorable than Evotec.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evotec | $717.28 million | 0.96 | -$117.12 million | N/A | N/A |
| Seer | $13.75 million | 8.12 | -$73.60 million | ($1.22) | -1.66 |
Seer has lower revenue, but higher earnings than Evotec.
Risk and Volatility
Evotec has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, Seer has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Profitability
This table compares Evotec and Seer’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evotec | -26.20% | -24.93% | -11.35% |
| Seer | -478.05% | -27.23% | -23.99% |
Institutional & Insider Ownership
5.8% of Evotec shares are owned by institutional investors. Comparatively, 75.2% of Seer shares are owned by institutional investors. 1.0% of Evotec shares are owned by insiders. Comparatively, 11.3% of Seer shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Seer beats Evotec on 7 of the 13 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 Seer
Seer, Inc., a life sciences company, engages in developing and commercializing products to decode the biology of the proteome. It develops Proteograph Product Suite, an integrated solution that includes proprietary engineered nanoparticles, consumables, automation instrumentation, and software to perform proteomic analysis to provide a solution that can be incorporated by nearly any lab for research use only. The company intends to sell its products for research use only, which cover academic institutions, life sciences, and research laboratories, as well as biopharmaceutical and biotechnology companies for non-diagnostic and non-clinical purposes. It operates in China, Australia, Eastern Europe, Israel, and Japan. The company was formerly known as Seer Biosciences, Inc. and changed its name to Seer, Inc. in July 2018. Seer, Inc. was incorporated in 2017 and is headquartered in Redwood City, California.
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