MorphoSys (NASDAQ:MOR) & Evelo Biosciences (NASDAQ:EVLO) Critical Review

Profitability

This table compares MorphoSys and Evelo Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MorphoSys	-226.79%	-694.31%	-22.55%
Evelo Biosciences	N/A	N/A	N/A

Volatility and Risk

MorphoSys has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Evelo Biosciences has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares MorphoSys and Evelo Biosciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MorphoSys	$238.28 million	11.99	-$205.35 million	($3.48)	-5.45
Evelo Biosciences	N/A	N/A	-$114.53 million	N/A	N/A

Evelo Biosciences has lower revenue, but higher earnings than MorphoSys.

Insider and Institutional Ownership

18.4% of MorphoSys shares are owned by institutional investors. Comparatively, 0.3% of Evelo Biosciences shares are owned by institutional investors. 0.1% of MorphoSys shares are owned by insiders. Comparatively, 1.0% of Evelo Biosciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Evelo Biosciences beats MorphoSys on 5 of the 8 factors compared between the two stocks.

About MorphoSys

MorphoSys AG, together with its subsidiaries, engages in the development and commercialization of therapeutics for patients suffering from various cancers in Europe, Asia, and the United States. The company's product pipeline includes Pelabresib that is in Phase 3 trials to treat myelofibrosis and thrombocythemia; Tulmimetostat, a product candidate in Phase 1/2 trials for the treatment of solid tumors and lymphomas; Felzartamab, an antibody directed against CD38 for renal autoimmune diseases and relapsed/refractory multiple myeloma; Ianalumab, a candidate in Phase 3 clinical trials for Sjögren's disease, lupus nephritis, and other autoimmune diseases; Abelacimab that is in Phase 3 trials for venous thromboembolism prevention and cancer-associated thrombosis; Setrusumab, which is in Phase 2/3 trials for osteogenesis imperfecta; and Bimagrumab, a product candidate in Phase 2b trials for adult obesity. It also develops MOR210/TJ210/HIB210 that is in Phase 1 clinical trials for relapsed or refractory advanced solid tumors; and NOV-8, a candidate in Phase 2 trials for the treatment of pulmonary sarcoidosis and dermatitis. The company has collaboration and licensing agreements with I-Mab Biopharma, Novartis, Anthos Therapeutics, Ultragenyx, Mereo BioPharma, Lilly, Human Immunology Biosciences, Inc. Incyte Corporation, and Xencor, Inc. MorphoSys AG was founded in 1992 and is headquartered in Planegg, Germany.

About Evelo Biosciences

Evelo Biosciences, Inc., a clinical-stage biotechnology company, focuses on discovering and developing oral medicines that act on immune cells in the small intestine with systemic effects. It is developing EDP1815, a whole-microbe product candidate, which has completed a Phase 2 trial for the treatment of psoriais; and is in Phase 2 clinical trial for the treatment of atopic dermatitis. The company is also developing EDP1867, a non-live pharmaceutical preparation for single strain of Veillonella parvula, which is in Phase 1b clinical trial; EDP2939, an investigational oral biologic for the potential treatment of inflammatory diseases; and EDP1908, a product candidate for oncology. Evelo Biosciences, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.