OpGen (NASDAQ: OPGN) and NewLink Genetics (NASDAQ:NLNK) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Volatility & Risk

OpGen has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, NewLink Genetics has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares OpGen and NewLink Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OpGen -533.47% -1,289.51% -234.78%
NewLink Genetics -229.19% -63.39% -47.83%

Valuation and Earnings

This table compares OpGen and NewLink Genetics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OpGen $4.03 million 2.43 -$19.16 million ($0.62) -0.28
NewLink Genetics $35.77 million 8.89 -$85.15 million ($2.44) -3.52

OpGen has higher earnings, but lower revenue than NewLink Genetics. NewLink Genetics is trading at a lower price-to-earnings ratio than OpGen, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

11.8% of OpGen shares are held by institutional investors. Comparatively, 52.6% of NewLink Genetics shares are held by institutional investors. 31.8% of OpGen shares are held by company insiders. Comparatively, 13.7% of NewLink Genetics 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.

Analyst Recommendations

This is a summary of current ratings and target prices for OpGen and NewLink Genetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OpGen 0 0 2 0 3.00
NewLink Genetics 0 0 6 0 3.00

OpGen currently has a consensus target price of $1.00, suggesting a potential upside of 478.03%. NewLink Genetics has a consensus target price of $25.67, suggesting a potential upside of 199.15%. Given OpGen’s higher possible upside, equities analysts plainly believe OpGen is more favorable than NewLink Genetics.

Summary

NewLink Genetics beats OpGen on 8 of the 12 factors compared between the two stocks.

OpGen Company Profile

OpGen, Inc. (OpGen) is a precision medicine company using molecular diagnostics and informatics to combat infectious disease. The Company is engaged in developing molecular information solutions to combat infectious disease in global healthcare settings, helping to guide clinicians with information about life threatening infections, managing patient outcomes, and the spread of infections caused by multidrug-resistant microorganisms. Its deoxyribonucleic acid (DNA) tests and bioinformatics address the threat of anti-biotic resistance by helping physicians and healthcare providers manage patient care decisions and protect the hospital biome through customized screening and surveillance solutions. It is working to deliver its molecular information solution to a global network of customers and partners. It is also working to provide precise diagnostic information powered by pathogen surveillance data. The Company’s high-resolution DNA tests are marketed under the Acuitas trade name.

NewLink Genetics Company Profile

NewLink Genetics Corporation is a clinical-stage immuno-oncology company focused on discovering, developing and commercializing immunotherapeutic products for the treatment of cancer. The Company’s portfolio includes biologic and small-molecule immunotherapy product candidates for a range of oncology indications. Its biologic product candidates are based on its HyperAcute Cellular Immunotherapy technology, which is designed to stimulate the human immune system to attack cancer cells. Its additional HyperAcute Cellular Immunotherapy product candidates in clinical development include tergenpumatucel-L and dorgenmeltucel-L for patients with advanced lung cancer and melanoma, respectively. Additionally, it has two small-molecule product candidates in clinical development: GDC-0919 and indoximod. These product candidates are indoleamine-2, 3-dioxygenase (IDO) pathway inhibitors and focus on breaking the immune system’s tolerance to cancer.

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