Codexis (NASDAQ: CDXS) and Sensient Technologies (NYSE:SXT) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares Codexis and Sensient Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
70.8% of Codexis shares are owned by institutional investors. Comparatively, 91.0% of Sensient Technologies shares are owned by institutional investors. 9.8% of Codexis shares are owned by company insiders. Comparatively, 0.9% of Sensient Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Codexis and Sensient Technologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Codexis||$50.02 million||12.01||-$22.99 million||($0.50)||-22.80|
|Sensient Technologies||$1.36 billion||2.18||$89.60 million||$3.42||20.15|
Sensient Technologies has higher revenue and earnings than Codexis. Codexis is trading at a lower price-to-earnings ratio than Sensient Technologies, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Codexis has a beta of -1.73, meaning that its share price is 273% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Sensient Technologies pays an annual dividend of $1.32 per share and has a dividend yield of 1.9%. Codexis does not pay a dividend. Sensient Technologies pays out 38.6% of its earnings in the form of a dividend. Sensient Technologies has increased its dividend for 6 consecutive years.
This is a summary of current ratings and recommmendations for Codexis and Sensient Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Codexis currently has a consensus price target of $11.50, indicating a potential upside of 0.88%. Sensient Technologies has a consensus price target of $90.77, indicating a potential upside of 31.68%. Given Sensient Technologies’ higher possible upside, analysts plainly believe Sensient Technologies is more favorable than Codexis.
Sensient Technologies beats Codexis on 13 of the 17 factors compared between the two stocks.
Codexis Company Profile
Codexis, Inc. discovers, develops, and sells protein catalysts. It also offers intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides protein catalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering protein catalysts that perform chemical transformations. The company's platform is used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. Its platform also enhances the pharmaceuticals companies manufacturing productivity and efficiency or outsourcing the manufacture of the intermediates and active pharmaceutical ingredients. The company sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. Codexis, Inc. was founded in 2002 and is headquartered in Redwood City, California.
Sensient Technologies Company Profile
Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.
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