Codexis (NASDAQ:CDXS) versus KiOR (OTCMKTS:KIORQ) Critical Analysis

KiOR (OTCMKTS:KIORQ) and Codexis (NASDAQ:CDXS) are both manufacturing companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Earnings & Valuation

This table compares KiOR and Codexis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KiOR	N/A	N/A	N/A	N/A	N/A
Codexis	$70.14 million	5.67	-$76.24 million	($0.87)	-5.62

KiOR has higher earnings, but lower revenue than Codexis.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KiOR and Codexis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KiOR	0	0	0	0	0.00
Codexis	0	1	2	0	2.67

Codexis has a consensus target price of $8.33, indicating a potential upside of 70.42%. Given Codexis’ stronger consensus rating and higher probable upside, analysts clearly believe Codexis is more favorable than KiOR.

Institutional & Insider Ownership

78.5% of Codexis shares are owned by institutional investors. 2.1% of Codexis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares KiOR and Codexis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KiOR	N/A	N/A	N/A
Codexis	-96.35%	-71.56%	-38.00%

Summary

Codexis beats KiOR on 6 of the 9 factors compared between the two stocks.

About KiOR

KiOR, Inc., incorporated on July 23, 2007, is a development-stage and is a next generation renewable fuels company. The Company is engaged in developing a commercial process to produce cellulosic gasoline and diesel from abundant, lignocellulosic biomass. The Company has developed a two-step technology platform that converts non-food lignocellulose into cellulosic gasoline and diesel that can be transported using the existing fuels distribution system for use in vehicles. The other renewable fuels are derived from soft starches, such as corn starch or cane sugar, for ethanol, or from soy and other vegetable oils for biodiesel, cellulosic fuel is derived from lignocellulose found in wood, grasses and the non-edible portions of plants. The Company has not generated any revenue.

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.