Head to Head Review: Gyre Therapeutics (NASDAQ:GYRE) & Evolus (NASDAQ:EOLS)

Gyre Therapeutics (NASDAQ:GYRE) and Evolus (NASDAQ:EOLS) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

24.0% of Gyre Therapeutics shares are held by institutional investors. Comparatively, 90.7% of Evolus shares are held by institutional investors. 9.5% of Gyre Therapeutics shares are held by insiders. Comparatively, 5.0% of Evolus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gyre Therapeutics and Evolus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gyre Therapeutics	1	1	0	0	1.50
Evolus	1	1	4	0	2.50

Evolus has a consensus target price of $14.50, indicating a potential upside of 96.74%. Given Evolus’ stronger consensus rating and higher possible upside, analysts plainly believe Evolus is more favorable than Gyre Therapeutics.

Earnings & Valuation

This table compares Gyre Therapeutics and Evolus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyre Therapeutics	$109.82 million	6.27	$5.03 million	($0.21)	-29.38
Evolus	$316.49 million	1.54	-$51.64 million	($0.52)	-14.17

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

Risk and Volatility

Gyre Therapeutics has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, Evolus has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Gyre Therapeutics and Evolus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gyre Therapeutics	-15.47%	-6.57%	-5.35%
Evolus	-10.85%	N/A	-13.00%

Summary

Evolus beats Gyre Therapeutics on 8 of the 14 factors compared between the two stocks.

About Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.