Critical Analysis: Medpace (NASDAQ:MEDP) versus Ginkgo Bioworks (NYSE:DNA)

Medpace (NASDAQ:MEDP) and Ginkgo Bioworks (NYSE:DNA) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Earnings & Valuation

This table compares Medpace and Ginkgo Bioworks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medpace	$2.53 billion	6.65	$451.12 million	$17.06	35.31
Ginkgo Bioworks	$170.15 million	2.94	-$312.76 million	($5.01)	-1.53

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

Risk and Volatility

Medpace has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Profitability

This table compares Medpace and Ginkgo Bioworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medpace	17.67%	110.15%	24.84%
Ginkgo Bioworks	-259.96%	-60.27%	-26.88%

Analyst Ratings

This is a summary of current ratings and recommmendations for Medpace and Ginkgo Bioworks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medpace	0	11	2	0	2.15
Ginkgo Bioworks	2	1	0	0	1.33

Medpace presently has a consensus target price of $584.18, suggesting a potential downside of 3.03%. Ginkgo Bioworks has a consensus target price of $7.00, suggesting a potential downside of 8.62%. Given Medpace’s stronger consensus rating and higher probable upside, research analysts plainly believe Medpace is more favorable than Ginkgo Bioworks.

Institutional and Insider Ownership

78.0% of Medpace shares are held by institutional investors. Comparatively, 78.6% of Ginkgo Bioworks shares are held by institutional investors. 20.5% of Medpace shares are held by insiders. Comparatively, 12.7% of Ginkgo Bioworks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Medpace beats Ginkgo Bioworks on 12 of the 14 factors compared between the two stocks.

About Medpace

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.

About Ginkgo Bioworks

Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries. Ginkgo Bioworks Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.