Emergent Biosolutions (NYSE:EBS – Get Free Report) and Oncocyte (NASDAQ:IMDX – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a summary of current ratings and target prices for Emergent Biosolutions and Oncocyte, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Emergent Biosolutions | 2 | 1 | 3 | 0 | 2.17 |
| Oncocyte | 1 | 0 | 2 | 0 | 2.33 |
Emergent Biosolutions currently has a consensus price target of $10.00, indicating a potential upside of 57.43%. Oncocyte has a consensus price target of $10.50, indicating a potential upside of 161.19%. Given Oncocyte’s stronger consensus rating and higher probable upside, analysts plainly believe Oncocyte is more favorable than Emergent Biosolutions.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Emergent Biosolutions | $742.90 million | 0.44 | $52.60 million | ($3.55) | -1.79 |
| Oncocyte | $4.05 million | 32.48 | -$50.22 million | ($1.49) | -2.70 |
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.
Risk and Volatility
Emergent Biosolutions has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500. Comparatively, Oncocyte has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Institutional and Insider Ownership
78.4% of Emergent Biosolutions shares are held by institutional investors. Comparatively, 55.3% of Oncocyte shares are held by institutional investors. 6.0% of Emergent Biosolutions shares are held by insiders. Comparatively, 2.2% of Oncocyte shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Emergent Biosolutions and Oncocyte’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Emergent Biosolutions | -22.95% | 16.35% | 6.17% |
| Oncocyte | -2,955.63% | N/A | -107.52% |
Summary
Emergent Biosolutions beats Oncocyte on 10 of the 14 factors compared between the two stocks.
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.
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.
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