Analyzing Evotec (NASDAQ:EVO) and Bio-Techne (NASDAQ:TECH)

Evotec (NASDAQ:EVO) and Bio-Techne (NASDAQ:TECH) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

5.8% of Evotec shares are owned by institutional investors. Comparatively, 98.9% of Bio-Techne shares are owned by institutional investors. 1.0% of Evotec shares are owned by company insiders. Comparatively, 1.3% of Bio-Techne shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Evotec has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Bio-Techne has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Evotec and Bio-Techne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evotec	-26.20%	-24.93%	-11.35%
Bio-Techne	9.05%	13.57%	10.66%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Evotec and Bio-Techne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evotec	1	2	2	0	2.20
Bio-Techne	1	13	3	0	2.12

Evotec presently has a consensus target price of $3.00, indicating a potential upside of 50.00%. Bio-Techne has a consensus target price of $68.08, indicating a potential downside of 5.83%. Given Evotec’s stronger consensus rating and higher possible upside, analysts clearly believe Evotec is more favorable than Bio-Techne.

Earnings & Valuation

This table compares Evotec and Bio-Techne”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evotec	$891.97 million	0.80	-$117.12 million	N/A	N/A
Bio-Techne	$1.21 billion	9.35	$73.40 million	$0.69	104.77

Bio-Techne has higher revenue and earnings than Evotec.

Summary

Bio-Techne beats Evotec on 9 of the 12 factors compared between the two stocks.

About Evotec

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as autoimmune diseases, cancer, CNS diseases, diabetes, fibrosis, immunology, infectious diseases, kidney diseases, liver diseases, pain and inflammation, rare diseases, respiratory diseases, tuberculosis, and women’s health. It has collaboration agreements with SK bioscience, JingXin, Carrick Therapeutics, Sernova, Topas Therapeutics, Exscientia, CONBA Group, Centrexion, Sanofi/NIH, Kazia Therapeutics, Bristol Myers Squibb, Topas Therapeutics, Immunitas, Exscientia, and Bayer; and Inserm, the French National Institute of Health and Medical Research, Lille University Hospital, and Inserm Transfert to identify novel therapeutic targets and diagnostic and prognostic markers in obesity and metabolic diseases, as well as collaboration with CHDI Foundation, Inc.; and a strategic partnership with Dewpoint Therapeutics to advance its portfolio targeting biomolecular condensates as a novel domain for therapeutic intervention towards the clinic, as well as research collaboration with Pfizer for metabolic and infectious diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

About Bio-Techne

Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets in the United States, the United Kingdom, rest of Europe, Middle East, and Africa, Greater China, rest of Asia-Pacific, and internationally. The company operates through two segments, Protein Sciences, and Diagnostics and Genomics. The Protein Sciences segment develops and manufactures biological reagents used in various aspects of life science research, diagnostics, and cell and gene therapy, such as cytokines and growth factors, antibodies, small molecules, tissue culture sera, and cell selection technologies. This segment also offers proteomic analytical tools for automated western blot and multiplexed ELISA workflow consists of manual and automated protein analysis instruments and immunoassays for use in quantifying proteins in various biological fluids. The Diagnostics and Genomics segment develops and manufactures diagnostic products, including controls, calibrators, and diagnostic assays for regulated diagnostics market, exosome-based molecular diagnostic assays, advanced tissue-based in-situ hybridization assays for spatial genomic and tissue biopsy analysis, and genetic and oncology kits for research and clinical applications; and sells products for genetic carrier screening, oncology diagnostics, molecular controls, and research, as well as instruments and process control products for hematology, blood chemistry and gases, and coagulation controls and reagents used in various diagnostic applications. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was incorporated in 1976 and is headquartered in Minneapolis, Minnesota.