Geron (NASDAQ:GERN – Get Free Report) and Evogene (NASDAQ:EVGN – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Geron has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Evogene has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Earnings and Valuation
This table compares Geron and Evogene”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geron | $183.88 million | 3.39 | -$83.50 million | ($0.08) | -12.09 |
| Evogene | $3.85 million | 0.84 | -$8.48 million | ($0.91) | -0.41 |
Evogene has lower revenue, but higher earnings than Geron. Geron is trading at a lower price-to-earnings ratio than Evogene, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Geron and Evogene, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geron | 1 | 2 | 3 | 0 | 2.33 |
| Evogene | 1 | 0 | 0 | 0 | 1.00 |
Geron currently has a consensus price target of $3.75, suggesting a potential upside of 287.80%. Given Geron’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Geron is more favorable than Evogene.
Profitability
This table compares Geron and Evogene’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geron | -23.04% | -16.29% | -6.82% |
| Evogene | -694.18% | -156.53% | -86.80% |
Insider & Institutional Ownership
73.7% of Geron shares are owned by institutional investors. Comparatively, 10.4% of Evogene shares are owned by institutional investors. 1.7% of Geron shares are owned by company insiders. Comparatively, 7.4% of Evogene 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.
Summary
Geron beats Evogene on 10 of the 14 factors compared between the two stocks.
About Geron
Geron Corporation is a biopharmaceutical company focused on developing and commercializing therapies for blood disorders and cancers. Its lead product, Rytelo (imetelstat), is a telomerase inhibitor approved in the United States to treat certain adults with lower-risk myelodysplastic syndromes (MDS) who have transfusion-dependent anemia. Geron continues to develop imetelstat for potential use in other hematologic conditions. The company was founded in 1990 and is headquartered in Foster City, California.
About Evogene
Evogene Ltd. (NASDAQ: EVGN) is an Israel-based computational biology company that develops technologies and products designed to improve human health, agriculture and sustainability. The company uses artificial intelligence, machine learning and biological data analysis through its Computational Predictive Biology platform to identify and develop solutions based on biological mechanisms. Evogene has built a portfolio of subsidiaries and business units focused on areas including agricultural biologicals, crop protection, microbiome-based therapeutics and medical cannabis.
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