Contrasting Charles River Laboratories International (NYSE:CRL) and Alpha Teknova (NASDAQ:TKNO)

Alpha Teknova (NASDAQ:TKNO) and Charles River Laboratories International (NYSE:CRL) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Insider and Institutional Ownership

13.8% of Alpha Teknova shares are held by institutional investors. Comparatively, 98.9% of Charles River Laboratories International shares are held by institutional investors. 13.2% of Alpha Teknova shares are held by insiders. Comparatively, 1.3% of Charles River Laboratories International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alpha Teknova and Charles River Laboratories International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Teknova	$40.52 million	9.42	-$17.26 million	($0.31)	-22.97
Charles River Laboratories International	$4.02 billion	3.47	-$144.34 million	($4.85)	-60.16

Alpha Teknova has higher earnings, but lower revenue than Charles River Laboratories International. Charles River Laboratories International is trading at a lower price-to-earnings ratio than Alpha Teknova, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alpha Teknova and Charles River Laboratories International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Teknova	1	1	2	0	2.25
Charles River Laboratories International	1	3	12	0	2.69

Alpha Teknova currently has a consensus target price of $7.50, indicating a potential upside of 5.34%. Charles River Laboratories International has a consensus target price of $255.65, indicating a potential downside of 12.39%. Given Alpha Teknova’s higher probable upside, equities analysts plainly believe Alpha Teknova is more favorable than Charles River Laboratories International.

Volatility & Risk

Alpha Teknova has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Charles River Laboratories International has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Alpha Teknova and Charles River Laboratories International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Teknova	-38.37%	-24.94%	-16.53%
Charles River Laboratories International	-5.96%	15.75%	6.51%

Summary

Charles River Laboratories International beats Alpha Teknova on 8 of the 14 factors compared between the two stocks.

About Alpha Teknova

Alpha Teknova, Inc. produces critical reagents for the research, discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics in the United States and internationally. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It provides lab essentials which provides chemical formulations for use in biological research and drug discovery; and clinical solutions, a custom product used in the development and production of protein therapies, gene therapies, mRNA vaccines, and diagnostic kits. The company serves its products to life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, as well as academic and government research institutions. Alpha Teknova, Inc. was founded in 1996 and is headquartered in Hollister, California.

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.