Critical Analysis: VivoSim Labs (NASDAQ:VIVS) & Charles River Laboratories International (NYSE:CRL)

VivoSim Labs (NASDAQ:VIVS) and Charles River Laboratories International (NYSE:CRL) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility and Risk

VivoSim Labs has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Charles River Laboratories International has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares VivoSim Labs and Charles River Laboratories International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VivoSim Labs	$130,000.00	20.53	-$13.84 million	($4.47)	-0.04
Charles River Laboratories International	$4.02 billion	3.60	-$144.34 million	($4.85)	-62.43

VivoSim Labs 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 VivoSim Labs, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for VivoSim Labs and Charles River Laboratories International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VivoSim Labs	1	0	0	0	1.00
Charles River Laboratories International	1	2	12	2	2.88

Charles River Laboratories International has a consensus target price of $302.33, suggesting a potential downside of 0.14%. Given Charles River Laboratories International’s stronger consensus rating and higher possible upside, analysts clearly believe Charles River Laboratories International is more favorable than VivoSim Labs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VivoSim Labs	-11,016.07%	-612.23%	-177.02%
Charles River Laboratories International	-5.96%	15.75%	6.51%

Institutional and Insider Ownership

8.2% of VivoSim Labs shares are held by institutional investors. Comparatively, 98.9% of Charles River Laboratories International shares are held by institutional investors. 1.0% of VivoSim Labs shares are held by company insiders. Comparatively, 1.3% of Charles River Laboratories International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Charles River Laboratories International beats VivoSim Labs on 10 of the 14 factors compared between the two stocks.

About VivoSim Labs

Organovo Holdings, Inc., a biotechnology company, focuses on developing 3D tissues that recapitulate key aspects of human disease. Its 3D human tissue platform includes its proprietary NovoGen Bioprinters, which are automated devices that enable the fabrication of 3D living tissues comprised mammalian cells; and related technologies for preparing bio-inks and bioprinting multicellular tissues with complex architecture. The company offers ExVive human liver tissue and ExVive human kidney tissue used for predictive preclinical testing of drug compounds. It is also developing in vivo liver tissues to treat end-stage liver, life-threatening, and orphan diseases. The company was incorporated in 2007 and is headquartered in Solana Beach, 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.