Financial Contrast: Emergent Biosolutions (NYSE:EBS) and Precigen (NASDAQ:PGEN)

Precigen (NASDAQ:PGEN) and Emergent Biosolutions (NYSE:EBS) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Precigen and Emergent Biosolutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precigen	$9.68 million	285.43	-$250.64 million	($1.04)	-7.45
Emergent Biosolutions	$742.90 million	0.47	$52.60 million	($3.55)	-1.91

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

Analyst Recommendations

This is a summary of current ratings and price targets for Precigen and Emergent Biosolutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precigen	1	0	4	1	2.83
Emergent Biosolutions	2	1	3	0	2.17

Precigen presently has a consensus price target of $13.67, indicating a potential upside of 76.34%. Emergent Biosolutions has a consensus price target of $10.00, indicating a potential upside of 47.17%. Given Precigen’s stronger consensus rating and higher probable upside, research analysts plainly believe Precigen is more favorable than Emergent Biosolutions.

Profitability

This table compares Precigen and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precigen	-183.98%	423.75%	84.39%
Emergent Biosolutions	-22.95%	16.35%	6.17%

Risk and Volatility

Precigen has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.

Institutional & Insider Ownership

33.5% of Precigen shares are held by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are held by institutional investors. 41.4% of Precigen shares are held by company insiders. Comparatively, 6.0% of Emergent Biosolutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Precigen beats Emergent Biosolutions on 9 of the 15 factors compared between the two stocks.

About Precigen

Precigen, Inc. operates as a discovery and clinical-stage biopharmaceutical company that develops gene and cell therapies using precision technology to target diseases in therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. It operates through two segments, Biopharmaceuticals and Exemplar. The company offers therapeutic platforms consisting of UltraCAR-T to provide chimeric antigen receptor T cell therapies for cancer patients; AdenoVerse immunotherapy, which utilizes a library of proprietary adenovectors for gene delivery of therapeutic effectors, immunomodulators, and vaccine antigen; and ActoBiotics for specific disease modification. It also develops programs based on the UltraCAR-T platform, including PRGN-3005 in Phase 1b clinical trial to treat advanced ovarian, fallopian tube, or primary peritoneal cancer; PRGN-3006 in Phase 1b trial for patients with relapsed or refractory acute myeloid leukemia and high-risk myelodysplastic syndromes; and PRGN-3007 in Phase 1/1b trial for the treatment of advanced receptor tyrosine kinase-like orphan receptor 1-positive, hematologic, and solid tumors. In addition, the company is developing programs based on the AdenoVerse immunotherapy platform comprising PRGN-2009 in Phase 2 trial for patients with HPV-associated cancer; and PRGN-2012 in Phase ½ trial to treat recurrent respiratory papillomatosis, as well as AG019, which is based on the ActoBiotics platform and in Phase 1b/2a trial, to treat type 1 diabetes mellitus. Further, it provides UltraPorator, a proprietary electroporation device; and develops research models and services for healthcare research applications. The company was formerly known as Intrexon Corporation and changed its name to Precigen, Inc. in February 2020. Precigen, Inc. was founded in 1998 and is headquartered in Germantown, Maryland.

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.