Codexis (NASDAQ:CDXS) and Sotera Health (NASDAQ:SHC) Head-To-Head Comparison

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

Institutional & Insider Ownership

78.5% of Codexis shares are owned by institutional investors. Comparatively, 91.0% of Sotera Health shares are owned by institutional investors. 3.5% of Codexis shares are owned by company insiders. Comparatively, 15.4% of Sotera Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Codexis and Sotera Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codexis	$70.39 million	2.25	-$43.97 million	($0.34)	-4.25
Sotera Health	$1.16 billion	4.65	$77.94 million	$0.57	33.26

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

Risk and Volatility

Codexis has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares Codexis and Sotera Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codexis	-39.55%	-74.36%	-23.58%
Sotera Health	13.44%	40.12%	7.55%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Codexis and Sotera Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codexis	1	1	2	0	2.25
Sotera Health	0	3	8	0	2.73

Codexis presently has a consensus price target of $6.50, suggesting a potential upside of 349.83%. Sotera Health has a consensus price target of $21.50, suggesting a potential upside of 13.41%. Given Codexis’ higher possible upside, analysts clearly believe Codexis is more favorable than Sotera Health.

Summary

Sotera Health beats Codexis on 12 of the 14 factors compared between the two stocks.

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.

About Sotera Health

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.