MannKind (NASDAQ:MNKD) & Evotec (OTCMKTS:EVTCY) Financial Survey

Evotec (OTCMKTS:EVTCY) and MannKind (NASDAQ:MNKD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Volatility and Risk

Evotec has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, MannKind has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

49.5% of MannKind shares are held by institutional investors. 3.0% of MannKind shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Evotec and MannKind”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evotec	$572.16 million	2.10	$7.14 million	$0.41	8.88
MannKind	$248.37 million	7.35	-$11.94 million	$0.03	223.33

Evotec has higher revenue and earnings than MannKind. Evotec is trading at a lower price-to-earnings ratio than MannKind, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Evotec and MannKind’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evotec	20.85%	16.02%	7.81%
MannKind	4.73%	-11.97%	6.64%

Analyst Ratings

This is a summary of current ratings and target prices for Evotec and MannKind, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evotec	0	0	0	0	N/A
MannKind	0	0	6	1	3.14

MannKind has a consensus price target of $8.67, indicating a potential upside of 29.35%. Given MannKind’s higher probable upside, analysts clearly believe MannKind is more favorable than Evotec.

Summary

MannKind beats Evotec on 8 of the 14 factors compared between the two stocks.

About Evotec

Evotec SE engages in the discovery and development of new drugs for pharmaceutical and biotechnology companies. It operates through the following segments: EVT Execute and EVT Innovate. The EVT Execute segment provides stand-alone or integrated drug discovery solutions for collaborators targets and programmers on a typical fee-for-service basis or through a variety of commercial structures, which may include performance-based components, such as milestones and royalties. The EVT Innovate develops drug discovery projects, assets and platforms, both internally or through academic collaborations. The company was founded by Manfred Eigen, Karsten Henco, Ulrich Aldag, Freimut Leidenberger, Heinrich Maria Schulte, Rudolf Rigler, and Charles Weissmann on December 8, 1993 and is headquartered in Hamburg, Germany.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF). In addition, it has collaboration and license agreement with United Therapeutics Corporation for development, regulatory, and commercial activities of Tyvaso DPI; co-promotion agreement with Vertice Pharma to promote Thyquidity; and collaboration agreement with Thirona to evaluate the therapeutic for the treatment of pulmonary fibrosis. Further, the company has supply and distribution agreement with Biomm S.A. for the commercialization of Afrezza in Brazil; and license and distribution agreement with Cipla Ltd. for the marketing and distribution of Afrezza in India. MannKind Corporation was incorporated in 1991 and is headquartered in Danbury, Connecticut.