Critical Contrast: Illumina (NASDAQ:ILMN) & Codexis (NASDAQ:CDXS)

Illumina (NASDAQ:ILMN) and Codexis (NASDAQ:CDXS) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

89.4% of Illumina shares are held by institutional investors. Comparatively, 78.5% of Codexis shares are held by institutional investors. 2.9% of Illumina shares are held by company insiders. Comparatively, 3.5% of Codexis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Illumina	19.72%	28.38%	12.11%
Codexis	-39.55%	-74.36%	-23.58%

Valuation & Earnings

This table compares Illumina and Codexis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Illumina	$4.34 billion	7.41	$850.00 million	$5.81	36.65
Codexis	$77.68 million	1.38	-$43.97 million	($0.34)	-2.87

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

Risk & Volatility

Illumina has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Codexis has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Illumina and Codexis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Illumina	3	6	10	0	2.37
Codexis	1	1	2	0	2.25

Illumina currently has a consensus price target of $244.24, indicating a potential upside of 14.70%. Codexis has a consensus price target of $6.50, indicating a potential upside of 565.71%. Given Codexis’ higher probable upside, analysts clearly believe Codexis is more favorable than Illumina.

Summary

Illumina beats Codexis on 11 of the 14 factors compared between the two stocks.

About Illumina

Illumina, Inc. develops and supplies technologies used to analyze genetic variation and biological function. Its products include next-generation sequencing systems, microarrays, reagents and consumables, as well as software and related services that help customers generate and interpret genomic data. The company’s technology is used in applications such as medical and population research, genetic testing, drug development, and agricultural and environmental studies. Its customers include academic and government research institutions, hospitals and clinical laboratories, biotechnology and pharmaceutical companies, and other organizations around the world.

About Codexis

Codexis, Inc. is a biotechnology company that develops enzymes and other biocatalytic technologies for use in pharmaceutical and biomanufacturing applications. Its proprietary CodeEvolver protein-engineering platform is designed to improve the performance of naturally occurring enzymes, including their activity, selectivity, stability and production characteristics. The company works with pharmaceutical and biotechnology companies to develop biocatalysts used in the manufacture of active pharmaceutical ingredients, intermediates and other complex molecules.