Financial Analysis: Adaptive Biotechnologies (NASDAQ:ADPT) and Ginkgo Bioworks (NYSE:DNA)

Adaptive Biotechnologies (NASDAQ:ADPTGet Free Report) and Ginkgo Bioworks (NYSE:DNAGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

Adaptive Biotechnologies has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Adaptive Biotechnologies and Ginkgo Bioworks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adaptive Biotechnologies 0 1 3 0 2.75
Ginkgo Bioworks 3 1 1 0 1.60

Adaptive Biotechnologies presently has a consensus target price of $6.50, suggesting a potential upside of 27.95%. Ginkgo Bioworks has a consensus target price of $4.58, suggesting a potential downside of 28.18%. Given Adaptive Biotechnologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Adaptive Biotechnologies is more favorable than Ginkgo Bioworks.

Earnings and Valuation

This table compares Adaptive Biotechnologies and Ginkgo Bioworks”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adaptive Biotechnologies $170.28 million 4.40 -$225.25 million ($1.34) -3.79
Ginkgo Bioworks $184.34 million 1.92 -$892.87 million ($13.08) -0.49

Adaptive Biotechnologies has higher earnings, but lower revenue than Ginkgo Bioworks. Adaptive Biotechnologies is trading at a lower price-to-earnings ratio than Ginkgo Bioworks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Adaptive Biotechnologies and Ginkgo Bioworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adaptive Biotechnologies -110.13% -62.06% -26.82%
Ginkgo Bioworks -298.78% -58.54% -34.24%

Institutional and Insider Ownership

99.2% of Adaptive Biotechnologies shares are held by institutional investors. Comparatively, 78.6% of Ginkgo Bioworks shares are held by institutional investors. 6.2% of Adaptive Biotechnologies shares are held by insiders. Comparatively, 9.7% of Ginkgo Bioworks shares are held 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.

Summary

Adaptive Biotechnologies beats Ginkgo Bioworks on 10 of the 14 factors compared between the two stocks.

About Adaptive Biotechnologies

(Get Free Report)

Adaptive Biotechnologies Corporation, a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. The company offers immunosequencing platform which combines a suite of proprietary chemistry, computational biology, and machine learning to generate clinical immunomics data to decode the adaptive immune system. It also provides clonoSEQ diagnostic test which detects and monitors the remaining number of cancer cells that are present in a patient’s body during and after treatment, known as Minimal Residual Disease (MRD). The company offers products and services for life sciences research, clinical diagnostics, and drug discovery applications. Adaptive Biotechnologies Corporation has strategic collaborations with Genentech, Inc. for the development, manufacture, and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers; and Microsoft Corporation to develop diagnostic tests for the early detection of various diseases from a single blood test. The company was formerly known as Adaptive TCR Corporation and changed its name to Adaptive Biotechnologies Corporation in December 2011. Adaptive Biotechnologies Corporation was incorporated in 2009 and is headquartered in Seattle, Washington.

About Ginkgo Bioworks

(Get Free Report)

Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries. Ginkgo Bioworks Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

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