Organovo Holdings (ONVO) versus WuXi PharmaTech (Cayman) (WX) Critical Contrast

Organovo Holdings (NASDAQ: ONVO) and WuXi PharmaTech (Cayman) (NYSE:WX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Organovo Holdings and WuXi PharmaTech (Cayman), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Organovo Holdings 0 1 3 0 2.75
WuXi PharmaTech (Cayman) 0 0 0 0 N/A

Organovo Holdings currently has a consensus target price of $6.94, indicating a potential upside of 350.49%. Given Organovo Holdings’ higher possible upside, equities research analysts clearly believe Organovo Holdings is more favorable than WuXi PharmaTech (Cayman).

Profitability

This table compares Organovo Holdings and WuXi PharmaTech (Cayman)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Organovo Holdings -923.89% -62.67% -57.68%
WuXi PharmaTech (Cayman) 7.52% 6.93% 4.67%

Earnings & Valuation

This table compares Organovo Holdings and WuXi PharmaTech (Cayman)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Organovo Holdings $4.23 million 38.93 -$38.44 million ($0.38) -4.05
WuXi PharmaTech (Cayman) N/A N/A N/A $1.18 38.91

WuXi PharmaTech (Cayman) has higher revenue, but lower earnings than Organovo Holdings. Organovo Holdings is trading at a lower price-to-earnings ratio than WuXi PharmaTech (Cayman), indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

24.2% of Organovo Holdings shares are held by institutional investors. 10.2% of Organovo Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Organovo Holdings beats WuXi PharmaTech (Cayman) on 5 of the 9 factors compared between the two stocks.

About Organovo Holdings

Organovo Holdings, Inc. is an early commercial-stage company focused on developing and commercializing functional human tissues. The Company focuses on the generation of three-dimensional (3D) human tissues, by utilizing its platform technology to create human tissue constructs in 3D. It is focused on development of products, including 3D human tissues used for the preclinical assessment of drug effects, including applications in predictive toxicology, absorption, distribution, metabolism, excretion (ADME), and drug metabolism and pharmacokinetics (DMPK); customized human tissues as living, dynamic models of human biology or disease, for use in drug discovery and development, and three-dimensional human tissues for clinical applications, such as blood vessels for bypass grafting, nerve grafts for nerve damage repair and functional tissue patches for the repair or replacement of damaged tissues and organs.

About WuXi PharmaTech (Cayman)

WuXi PharmaTech (Cayman) Inc. is a pharmaceutical, biotechnology and medical device research and development (R&D) services company, with operations in China and the United States. The Company provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers. It conducts its operations in two segments: Laboratory services and Manufacturing services. The Company offers Laboratory services for pharmaceutical, biotechnology and medical device companies. It offers Manufacturing services, which include the development of manufacturing processes and the production of advanced intermediates and active pharmaceutical ingredients (APIs) for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologic products.

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