Head-To-Head Review: Monte Rosa Therapeutics (NASDAQ:GLUE) & Codexis (NASDAQ:CDXS)

Monte Rosa Therapeutics (NASDAQ:GLUE) and Codexis (NASDAQ:CDXS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. Comparatively, 78.5% of Codexis shares are owned by institutional investors. 6.9% of Monte Rosa Therapeutics shares are owned by insiders. Comparatively, 1.9% of Codexis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Monte Rosa Therapeutics and Codexis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monte Rosa Therapeutics	$75.62 million	3.93	-$72.70 million	$0.36	13.36
Codexis	$59.35 million	3.70	-$65.28 million	($0.83)	-2.93

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Monte Rosa Therapeutics and Codexis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monte Rosa Therapeutics	0	1	2	0	2.67
Codexis	0	1	1	0	2.50

Monte Rosa Therapeutics presently has a consensus price target of $15.33, indicating a potential upside of 218.78%. Codexis has a consensus price target of $11.00, indicating a potential upside of 352.67%. Given Codexis’ higher possible upside, analysts plainly believe Codexis is more favorable than Monte Rosa Therapeutics.

Risk & Volatility

Monte Rosa Therapeutics has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Codexis has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500.

Profitability

This table compares Monte Rosa Therapeutics and Codexis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monte Rosa Therapeutics	13.58%	9.95%	6.42%
Codexis	-113.67%	-105.83%	-46.06%

Summary

Monte Rosa Therapeutics beats Codexis on 11 of the 14 factors compared between the two stocks.

About Monte Rosa Therapeutics

Monte Rosa Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. The company develops MRT-2359, an orally bioavailable molecular glue degrader targeting the translation termination factor protein GSPT1 for the treatment of MYC-driven tumors; MRT-6160 for the treatment of systemic and central nervous system autoimmune diseases; and MRT-8102 for the treatment of IL-1?/NLRP3 driven inflammatory diseases. It also develops CDK2 to treat ovarian, uterine, and breast cancers. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.

About Codexis

Codexis, Inc. discovers, develops, and sells enzymes and other proteins. The company operates through two segments, Performance Enzymes and Novel Biotherapeutics. It offers biocatalyst products and services. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver, a technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used for molecular biology and in vitro diagnostic enzymes. It has a collaboration agreement with Nestlé Health Science to develop CDX-7108 for the treatment of exocrine pancreatic insufficiency. The company sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.