Analyzing Codexis (CDXS) & Regulus Therapeutics (RGLS)

Codexis (NASDAQ: CDXS) and Regulus Therapeutics (NASDAQ:RGLS) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

63.6% of Codexis shares are held by institutional investors. Comparatively, 21.9% of Regulus Therapeutics shares are held by institutional investors. 9.8% of Codexis shares are held by company insiders. Comparatively, 4.8% of Regulus Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Codexis and Regulus Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Codexis 0 1 3 0 2.75
Regulus Therapeutics 0 5 1 0 2.17

Codexis presently has a consensus target price of $7.19, suggesting a potential upside of 5.31%. Regulus Therapeutics has a consensus target price of $4.10, suggesting a potential upside of 200.72%. Given Regulus Therapeutics’ higher possible upside, analysts clearly believe Regulus Therapeutics is more favorable than Codexis.

Valuation and Earnings

This table compares Codexis and Regulus Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Codexis $43.16 million 7.64 -$15.16 million ($0.41) -16.65
Regulus Therapeutics $257,999.00 548.45 -$73.96 million ($1.54) -0.89

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

Risk & Volatility

Codexis has a beta of -1.43, indicating that its share price is 243% less volatile than the S&P 500. Comparatively, Regulus Therapeutics has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares Codexis and Regulus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Codexis -40.70% -83.39% -45.44%
Regulus Therapeutics -31,460.47% -173.20% -90.45%

Summary

Codexis beats Regulus Therapeutics on 10 of the 13 factors compared between the two stocks.

Codexis Company Profile

Codexis, Inc. is a developer of biocatalysts for the pharmaceutical and fine chemicals markets. The Company’s CodeEvolver protein engineering technology platform, which introduces genetic mutations into genes in order to give rise to changes in the enzymes that they produce, overcomes many of the limitations, allowing customers to evolve and optimize biocatalysts to perform specific and desired chemical reactions at commercial scale. The Company’s pharmaceutical products include enzymes, pharmaceutical intermediates, active pharmaceutical ingredients (APIs) and Codex Biocatalyst Panels and Kits. The fine chemicals market consists of several market verticals, including food and food ingredients, animal feed, flavors and fragrances, and agricultural chemicals. The Company also uses its technology to develop an early stage, enzyme therapeutic product candidate for the treatment of phenylketonuria (PKU) in humans through oral administration.

Regulus Therapeutics Company Profile

Regulus Therapeutics Inc. is a biopharmaceutical company focused on discovering and developing drugs that target microRNAs to treat a range of diseases. The Company uses its microRNA product platform to develop chemically modified, single-stranded oligonucleotides that the Company calls anti-miRs to modulate microRNAs and return diseased cells to their healthy state. The Company’s Regulus microMarkers division is focused on identifying microRNAs as biomarkers of human disease. It has a research collaboration with Biogen focused on the discovery of microRNAs as biomarkers for multiple sclerosis and has completed research for another pharmaceutical company to explore microRNAs as biomarkers for specific patient populations. The Company is developing RG-101, an N-Acetylgalactosamine (GalNAc)-conjugated anti-miR targeting miR-122; RG-012, an anti-miR targeting microRNA-21 for the treatment of Alport syndrome, and RG-125, a GalNAc-conjugated anti-miR targeting microRNA-103/107.

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