Critical Contrast: Emergent Biosolutions (NYSE:EBS) & Dyadic International (NASDAQ:DYAI)

Dyadic International (NASDAQ:DYAI) and Emergent Biosolutions (NYSE:EBS) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Dyadic International and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dyadic International	-201.43%	-2,920.31%	-84.77%
Emergent Biosolutions	-22.95%	16.35%	6.17%

Insider and Institutional Ownership

27.9% of Dyadic International shares are owned by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are owned by institutional investors. 20.9% of Dyadic International shares are owned by insiders. Comparatively, 6.0% of Emergent Biosolutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Dyadic International and Emergent Biosolutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dyadic International	1	0	1	0	2.00
Emergent Biosolutions	2	1	3	0	2.17

Dyadic International currently has a consensus target price of $3.00, suggesting a potential upside of 606.88%. Emergent Biosolutions has a consensus target price of $10.00, suggesting a potential upside of 57.33%. Given Dyadic International’s higher probable upside, research analysts plainly believe Dyadic International is more favorable than Emergent Biosolutions.

Earnings & Valuation

This table compares Dyadic International and Emergent Biosolutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dyadic International	$3.09 million	5.00	-$7.36 million	($0.23)	-1.85
Emergent Biosolutions	$742.90 million	0.44	$52.60 million	($3.55)	-1.79

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

Volatility & Risk

Dyadic International has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500.

Summary

Emergent Biosolutions beats Dyadic International on 10 of the 14 factors compared between the two stocks.

About Dyadic International

Dyadic International, Inc., a biotechnology platform company, develops, produces, and sells enzymes and other proteins in the United States and internationally. It utilizes C1-cell protein production platform based on an industrially proven microorganism (C1) for the development and production of biologic products including enzymes and other proteins for human and animal health. The company offers DYAI-100, SARS-CoV-2-RBD antigen vaccine candidate towards a first-in-human Phase 1 clinical trial to demonstrate the safety in humans of a protein produced using the C1 platform. It has also developed the Dapibus thermophilic, a filamentous fungal-based microbial protein production platform to enable the development and large-scale manufacture of cost-effective proteins, metabolites, and other biologic products for use in non-pharmaceutical applications, including food, nutrition, and wellness. The company has a research and development agreement with VTT Technical Research Centre of Finland, Ltd.; license agreement with South Africa's Rubic One Health; Joint Development Agreement with a Global Food Ingredient Company; and sub-license agreement with Abic Biological Laboratories Ltd., Alphazyme, LLC, and Abic Biological Laboratories Ltd. Dyadic International, Inc. was founded in 1979 and is headquartered in Jupiter, Florida.

About Emergent Biosolutions

Emergent BioSolutions Inc., a life sciences company, provides preparedness and response solutions for accidental, deliberate, and naturally occurring public health threats in the United States. The company offers NARCAN Nasal Spray for the emergency treatment of known or suspected opioid overdose; Vaxchora vaccine for the prevention of cholera; Vivotif vaccine for oral administration for the prevention of typhoid fever; Anthrasil for the treatment of inhalational anthrax; BioThrax, an anthrax vaccine; CYFENDUS for post-exposure prophylaxis of disease following suspected or confirmed exposure to Bacillus anthracis; and Raxibacumab injection for the treatment and prophylaxis of inhalational anthrax. It also provides ACAM2000, a smallpox vaccine; CNJ-016 to address complications from smallpox vaccination; TEMBEXA for the treatment of smallpox disease caused by variola virus in adult and pediatric patients; BAT for the treatment of symptomatic botulism; Ebanga for the treatment of Ebola; Reactive Skin Decontamination Lotion Kit to remove or neutralize chemical warfare agents from the skin; Trobigard, a atropine sulfate obidoxime chloride auto-injector. In addition, the company is developing CGRD-001 for the treatment of poisoning by organophosphorus nerve agents or organophosphorus compounds; EBS-LASV to prevent Lassa fever; EBS-MARV to prevent Marburg virus disease; EBS-SUDV to prevent Sudan virus disease; Pan-Ebola mAbs for the treatment of ebola virus; SIAN Antidote for initial treatment of certain or suspected acute cyanide poisoning; UniFlu for immunity against influenza A and B viruses; and WEVEE-VLP for equine encephalitis virus infections. Further, it provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.