Critical Analysis: Codexis (NASDAQ:CDXS) versus Keyuan Petrochemicals (OTCMKTS:KEYP)

Keyuan Petrochemicals (OTCMKTS:KEYP) and Codexis (NASDAQ:CDXS) are both small-cap manufacturing companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Keyuan Petrochemicals and Codexis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keyuan Petrochemicals	N/A	N/A	N/A
Codexis	-96.35%	-71.56%	-38.00%

Valuation and Earnings

This table compares Keyuan Petrochemicals and Codexis”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keyuan Petrochemicals	N/A	N/A	N/A	N/A	N/A
Codexis	$59.35 million	3.85	-$76.24 million	($0.90)	-3.07

Keyuan Petrochemicals has higher earnings, but lower revenue than Codexis.

Analyst Ratings

This is a breakdown of recent ratings for Keyuan Petrochemicals and Codexis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keyuan Petrochemicals	0	0	0	0	0.00
Codexis	0	1	2	0	2.67

Codexis has a consensus target price of $8.33, indicating a potential upside of 201.93%. Given Codexis’ stronger consensus rating and higher probable upside, analysts clearly believe Codexis is more favorable than Keyuan Petrochemicals.

Institutional & Insider Ownership

78.5% of Codexis shares are held by institutional investors. 2.1% of Codexis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Codexis beats Keyuan Petrochemicals on 6 of the 9 factors compared between the two stocks.

About Keyuan Petrochemicals

Keyuan Petrochemicals, Inc., through its subsidiaries, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan Synthetic Rubbers, Guangxi Keyuan and Zhongkexuneng, is engaged in the manufacture and sale of petrochemical products and rubber in the People’s Republic of China. The Company’s segments include the manufacture and sale of petrochemical products (petrochemical segment) and the manufacture and sale of rubber products (rubber segment). The Petrochemicals Segment includes the manufacturing and sales of mixed light aromatics, mixed heavy aromatics, fine propylene, propane, butane, liquefied petroleum gas (LPG), methyltert-butylether and styrene. The Rubber Segment includes the manufacturing and sales of various rubber products. It manufactures and supplies various petrochemical and rubber products, including petrochemical products, such as Benzene Toluene-Xylene Aromatics (BTX Aromatics), propylene, styrene, LPG, Methyl Tertiary Butyl Ether (MTBE) and rubber products.

About Codexis

Codexis, Inc. discovers, develops, and sells enzymes and other proteins. The company operates through two segments, Performance Enzymes and Novel Biotherapeutics. It offers biocatalyst products and services. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver, a technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used for molecular biology and in vitro diagnostic enzymes. It has a collaboration agreement with Nestlé Health Science to develop CDX-7108 for the treatment of exocrine pancreatic insufficiency. The company sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.