Critical Survey: Novonesis A/S (OTC:NVZMY) and Ginkgo Bioworks (NYSE:DNA)

Novonesis A/S (OTC:NVZMY) and Ginkgo Bioworks (NYSE:DNA) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Novonesis A/S and Ginkgo Bioworks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novonesis A/S	$2.60 billion	10.59	$439.08 million	$1.58	37.16
Ginkgo Bioworks	$227.04 million	1.53	-$892.87 million	($10.68)	-0.56

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

Analyst Ratings

This is a summary of current recommendations for Novonesis A/S and Ginkgo Bioworks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novonesis A/S	1	0	0	0	1.00
Ginkgo Bioworks	3	1	1	0	1.60

Ginkgo Bioworks has a consensus target price of $4.58, suggesting a potential downside of 23.75%. Given Ginkgo Bioworks’ stronger consensus rating and higher probable upside, analysts clearly believe Ginkgo Bioworks is more favorable than Novonesis A/S.

Volatility & Risk

Novonesis A/S has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Ginkgo Bioworks has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Novonesis A/S and Ginkgo Bioworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novonesis A/S	N/A	N/A	N/A
Ginkgo Bioworks	-298.78%	-58.54%	-34.24%

Insider & Institutional Ownership

0.0% of Novonesis A/S shares are held by institutional investors. Comparatively, 78.6% of Ginkgo Bioworks shares are held by institutional investors. 9.7% of Ginkgo Bioworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Novonesis A/S beats Ginkgo Bioworks on 8 of the 14 factors compared between the two stocks.

About Novonesis A/S

Novonesis A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novonesis A/S was founded in 1925 and is based in Bagsvaerd, Denmark.

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.