BG Medicine (OTCMKTS:BGMD) & Alpha Teknova (NASDAQ:TKNO) Critical Review

Alpha Teknova (NASDAQ:TKNO) and BG Medicine (OTCMKTS:BGMD) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Alpha Teknova and BG Medicine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Teknova	0	1	1	0	2.50
BG Medicine	0	0	0	0	0.00

Alpha Teknova currently has a consensus target price of $5.00, indicating a potential downside of 31.97%. Given BG Medicine’s higher probable upside, analysts plainly believe BG Medicine is more favorable than Alpha Teknova.

Profitability

This table compares Alpha Teknova and BG Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Teknova	-87.17%	-35.30%	-24.52%
BG Medicine	N/A	N/A	N/A

Risk and Volatility

Alpha Teknova has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, BG Medicine has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Institutional and Insider Ownership

13.8% of Alpha Teknova shares are held by institutional investors. 15.2% of Alpha Teknova shares are held by company insiders. Comparatively, 6.5% of BG Medicine shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Alpha Teknova and BG Medicine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Teknova	$36.35 million	10.78	-$36.78 million	($0.74)	-9.93
BG Medicine	N/A	N/A	N/A	N/A	N/A

BG Medicine has lower revenue, but higher earnings than Alpha Teknova.

About Alpha Teknova

Alpha Teknova, Inc. produces critical reagents for the research, discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics in the United States and internationally. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It provides lab essentials which provides chemical formulations for use in biological research and drug discovery; and clinical solutions, a custom product used in the development and production of protein therapies, gene therapies, mRNA vaccines, and diagnostic kits. The company serves its products to life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, as well as academic and government research institutions. Alpha Teknova, Inc. was founded in 1996 and is headquartered in Hollister, California.

About BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.