Reviewing Evotec (NASDAQ:EVO) and CASI Pharmaceuticals (NASDAQ:CASI)

Evotec (NASDAQ:EVO) and CASI Pharmaceuticals (NASDAQ:CASI) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

Evotec has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, CASI Pharmaceuticals has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Evotec and CASI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evotec	-20.14%	-16.94%	-8.14%
CASI Pharmaceuticals	-148.55%	-972.55%	-99.07%

Institutional and Insider Ownership

5.8% of Evotec shares are owned by institutional investors. Comparatively, 22.2% of CASI Pharmaceuticals shares are owned by institutional investors. 1.0% of Evotec shares are owned by company insiders. Comparatively, 21.2% of CASI Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Evotec and CASI Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evotec	1	1	2	0	2.25
CASI Pharmaceuticals	1	0	1	0	2.00

Evotec presently has a consensus target price of $7.00, indicating a potential upside of 80.88%. CASI Pharmaceuticals has a consensus target price of $4.00, indicating a potential upside of 102.02%. Given CASI Pharmaceuticals’ higher probable upside, analysts plainly believe CASI Pharmaceuticals is more favorable than Evotec.

Valuation & Earnings

This table compares Evotec and CASI Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evotec	$862.40 million	1.59	-$212.18 million	N/A	N/A
CASI Pharmaceuticals	$31.56 million	0.77	-$39.26 million	($2.89)	-0.69

CASI Pharmaceuticals has lower revenue, but higher earnings than Evotec.

Summary

Evotec beats CASI Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Evotec

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as autoimmune diseases, cancer, CNS diseases, diabetes, fibrosis, immunology, infectious diseases, kidney diseases, liver diseases, pain and inflammation, rare diseases, respiratory diseases, tuberculosis, and women’s health. It has collaboration agreements with SK bioscience, JingXin, Carrick Therapeutics, Sernova, Topas Therapeutics, Exscientia, CONBA Group, Centrexion, Sanofi/NIH, Kazia Therapeutics, Bristol Myers Squibb, Topas Therapeutics, Immunitas, Exscientia, and Bayer; and Inserm, the French National Institute of Health and Medical Research, Lille University Hospital, and Inserm Transfert to identify novel therapeutic targets and diagnostic and prognostic markers in obesity and metabolic diseases, as well as collaboration with CHDI Foundation, Inc.; and a strategic partnership with Dewpoint Therapeutics to advance its portfolio targeting biomolecular condensates as a novel domain for therapeutic intervention towards the clinic, as well as research collaboration with Pfizer for metabolic and infectious diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.