Critical Comparison: Evoke Pharma (NASDAQ:EVOK) versus Geron (NASDAQ:GERN)

Geron (NASDAQ:GERN) and Evoke Pharma (NASDAQ:EVOK) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Valuation and Earnings

This table compares Geron and Evoke Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geron	$29.48 million	75.05	-$184.13 million	($0.32)	-11.44
Evoke Pharma	$8.62 million	0.95	-$7.79 million	($10.99)	-0.50

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

Profitability

This table compares Geron and Evoke Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Geron	-682.48%	-67.53%	-45.46%
Evoke Pharma	-71.32%	-308.49%	-53.66%

Risk & Volatility

Geron has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Evoke Pharma has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Geron and Evoke Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Geron	0	1	8	2	3.09
Evoke Pharma	0	0	0	0	0.00

Geron currently has a consensus price target of $7.15, suggesting a potential upside of 95.36%. Given Geron’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Geron is more favorable than Evoke Pharma.

Insider and Institutional Ownership

73.7% of Geron shares are owned by institutional investors. 3.1% of Geron shares are owned by insiders. Comparatively, 6.1% of Evoke Pharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Geron beats Evoke Pharma on 11 of the 15 factors compared between the two stocks.

About Geron

Geron Corporation, a late-stage clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for myeloid hematologic malignancies. It develops imetelstat, a telomerase inhibitor that is in Phase 3 clinical trials, which inhibits the uncontrolled proliferation of malignant stem and progenitor cells in myeloid hematologic malignancies for the treatment of low or intermediate-1 risk myelodysplastic syndromes and intermediate-2 or high-risk myelofibrosis. The company was incorporated in 1990 and is headquartered in Foster City, California.

About Evoke Pharma

Evoke Pharma, Inc., a specialty pharmaceutical company, primarily focuses on the development and commercialization of drugs for the treatment of gastroenterological disorders and diseases. It offers Gimoti, a metoclopramide nasal spray to treat symptoms associated with acute and recurrent diabetic gastroparesis in adults. The company markets its products to gastroenterologists, internal medicine specialists, primary care physicians, and select health care providers. Evoke Pharma, Inc. was incorporated in 2007 and is headquartered in Solana Beach, California.