Critical Comparison: PolyPid (NASDAQ:PYPD) vs. Stevanato Group (NYSE:STVN)

PolyPid (NASDAQ:PYPD) and Stevanato Group (NYSE:STVN) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Valuation and Earnings

This table compares PolyPid and Stevanato Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PolyPid	N/A	N/A	-$29.02 million	($4.30)	-0.81
Stevanato Group	$1.19 billion	5.67	$127.45 million	€0.54	41.39

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

Profitability

This table compares PolyPid and Stevanato Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PolyPid	N/A	-1,069.37%	-151.85%
Stevanato Group	11.73%	10.34%	6.21%

Analyst Ratings

This is a breakdown of recent ratings for PolyPid and Stevanato Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PolyPid	0	0	5	1	3.17
Stevanato Group	0	2	3	1	2.83

PolyPid currently has a consensus price target of $11.80, suggesting a potential upside of 238.11%. Given PolyPid’s stronger consensus rating and higher possible upside, analysts plainly believe PolyPid is more favorable than Stevanato Group.

Institutional and Insider Ownership

26.5% of PolyPid shares are held by institutional investors. 24.7% of PolyPid shares are held by insiders. Comparatively, 0.7% of Stevanato Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

PolyPid has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Stevanato Group has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Summary

Stevanato Group beats PolyPid on 7 of the 13 factors compared between the two stocks.

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.

About Stevanato Group

Stevanato Group S.p.A. engages in the design, production, and distribution of products and processes to provide integrated solutions for bio-pharma and healthcare industries in Europe, the Middle East, Africa, North America, South America, and the Asia Pacific. The company operates in two segments, Biopharmaceutical and Diagnostic Solutions; and Engineering. Its principal products include containment solutions, drug delivery systems, medical devices, diagnostic, analytical services, visual inspection machines, assembling and packaging machines, and glass forming machines. The company was founded in 1949 and is headquartered in Piombino Dese, Italy. Stevanato Group S.p.A. is a subsidiary of Stevanato Holding S.R.L.