Head to Head Survey: Alpha Teknova (NASDAQ:TKNO) and Charles River Laboratories International (NYSE:CRL)

Charles River Laboratories International (NYSE:CRL) and Alpha Teknova (NASDAQ:TKNO) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Charles River Laboratories International and Alpha Teknova”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charles River Laboratories International	$4.02 billion	3.55	-$144.34 million	($4.85)	-61.60
Alpha Teknova	$40.52 million	9.71	-$17.26 million	($0.31)	-23.68

Alpha Teknova has lower revenue, but higher earnings than Charles River Laboratories International. Charles River Laboratories International is trading at a lower price-to-earnings ratio than Alpha Teknova, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Charles River Laboratories International and Alpha Teknova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles River Laboratories International	-5.96%	15.75%	6.51%
Alpha Teknova	-38.37%	-24.94%	-16.53%

Institutional and Insider Ownership

98.9% of Charles River Laboratories International shares are held by institutional investors. Comparatively, 13.8% of Alpha Teknova shares are held by institutional investors. 1.3% of Charles River Laboratories International shares are held by insiders. Comparatively, 13.2% of Alpha Teknova shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Charles River Laboratories International and Alpha Teknova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles River Laboratories International	1	3	12	0	2.69
Alpha Teknova	1	1	2	0	2.25

Charles River Laboratories International presently has a consensus target price of $255.65, indicating a potential downside of 14.43%. Alpha Teknova has a consensus target price of $7.50, indicating a potential upside of 2.18%. Given Alpha Teknova’s higher possible upside, analysts clearly believe Alpha Teknova is more favorable than Charles River Laboratories International.

Volatility & Risk

Charles River Laboratories International has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Alpha Teknova has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Summary

Charles River Laboratories International beats Alpha Teknova on 8 of the 14 factors compared between the two stocks.

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.

About Alpha Teknova

Alpha Teknova, Inc. produces critical reagents for the research, discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics in the United States and internationally. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It provides lab essentials which provides chemical formulations for use in biological research and drug discovery; and clinical solutions, a custom product used in the development and production of protein therapies, gene therapies, mRNA vaccines, and diagnostic kits. The company serves its products to life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, as well as academic and government research institutions. Alpha Teknova, Inc. was founded in 1996 and is headquartered in Hollister, California.