Financial Review: Cardax (OTCMKTS:CDXI) versus Emergent BioSolutions (NYSE:EBS)

Cardax (OTCMKTS:CDXI) and Emergent BioSolutions (NYSE:EBS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Cardax and Emergent BioSolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardax	N/A	N/A	N/A
Emergent BioSolutions	-18.55%	-9.91%	-3.31%

Earnings and Valuation

This table compares Cardax and Emergent BioSolutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardax	N/A	N/A	N/A	N/A	N/A
Emergent BioSolutions	$1.09 billion	0.41	-$760.50 million	($4.10)	-2.02

Cardax has higher earnings, but lower revenue than Emergent BioSolutions.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cardax and Emergent BioSolutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardax	0	0	0	0	0.00
Emergent BioSolutions	0	0	2	0	3.00

Emergent BioSolutions has a consensus target price of $14.00, indicating a potential upside of 69.29%. Given Emergent BioSolutions’ stronger consensus rating and higher probable upside, analysts plainly believe Emergent BioSolutions is more favorable than Cardax.

Institutional and Insider Ownership

78.4% of Emergent BioSolutions shares are held by institutional investors. 29.5% of Cardax shares are held by company insiders. Comparatively, 1.2% of Emergent BioSolutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Emergent BioSolutions beats Cardax on 5 of the 9 factors compared between the two stocks.

About Cardax

Cardax, Inc., a biopharmaceutical company, develops and commercializes dietary supplements for inflammatory health and pharmaceuticals for chronic diseases driven by inflammation and oxidative stress. It offers ZanthoSyn, an inflammatory supplement for health and longevity that provides astaxanthin with enhanced absorption and purity. The company sells ZanthoSyn primarily through e-commerce and wholesale channels. It is also developing CDX-101, an astaxanthin pharmaceutical candidate for cardiovascular inflammation and dyslipidemia, with a target indication of severe hypertriglyceridemia; and CDX-301, a zeaxanthin pharmaceutical candidate for macular degeneration. Cardax, Inc. is based in Honolulu, Hawaii.

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.