Codexis (NASDAQ:CDXS – Get Free Report) and Liquidia (NASDAQ:LQDA – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
78.5% of Codexis shares are owned by institutional investors. Comparatively, 64.5% of Liquidia shares are owned by institutional investors. 3.5% of Codexis shares are owned by insiders. Comparatively, 25.6% of Liquidia shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Codexis and Liquidia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Codexis | 1 | 0 | 1 | 0 | 2.00 |
| Liquidia | 2 | 0 | 5 | 3 | 2.90 |
Profitability
This table compares Codexis and Liquidia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Codexis | -40.97% | -68.09% | -23.72% |
| Liquidia | 7.74% | 46.82% | 7.06% |
Risk & Volatility
Codexis has a beta of 2.48, meaning that its stock price is 148% more volatile than the S&P 500. Comparatively, Liquidia has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Valuation and Earnings
This table compares Codexis and Liquidia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Codexis | $70.39 million | 3.11 | -$43.97 million | ($0.37) | -6.51 |
| Liquidia | $158.32 million | 40.24 | -$68.92 million | $0.14 | 511.64 |
Codexis has higher earnings, but lower revenue than Liquidia. Codexis is trading at a lower price-to-earnings ratio than Liquidia, indicating that it is currently the more affordable of the two stocks.
Summary
Liquidia beats Codexis on 11 of the 15 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 Liquidia
Liquidia Corporation, a biopharmaceutical company, develops, manufactures, and commercializes various products for unmet patient needs in the United States. Its lead product candidates include YUTREPIA, an inhaled dry powder formulation of treprostinil for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The company also offers Remodulin, a treprostinil administered through continuous intravenous and subcutaneous infusion. The company also a license agreement with Pharmosa Biopharm Inc to develop and commercialize L606, an inhaled sustained-release formulation of Treprostinil for the treatment of PAH and PH-ILD. Liquidia Corporation was founded in 2004 and is headquartered in Morrisville, North Carolina.
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