Analyzing PolyPid (NASDAQ:PYPD) and GBS (NYSE:GBS)

PolyPid (NASDAQ:PYPD) and GBS (NYSE:GBS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares PolyPid and GBS’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PolyPid	N/A	N/A	-$23.86 million	($12.64)	-0.34
GBS	$440,000.00	63.28	-$8.31 million	($0.56)	-3.34

GBS has higher revenue and earnings than PolyPid. GBS is trading at a lower price-to-earnings ratio than PolyPid, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

PolyPid has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares PolyPid and GBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PolyPid	N/A	-572.69%	-110.25%
GBS	N/A	-85.64%	-54.42%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PolyPid and GBS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PolyPid	0	0	1	0	3.00
GBS	0	0	0	0	N/A

PolyPid currently has a consensus price target of $14.00, suggesting a potential upside of 225.58%. Given PolyPid’s higher probable upside, equities research analysts clearly believe PolyPid is more favorable than GBS.

Insider and Institutional Ownership

26.5% of PolyPid shares are owned by institutional investors. Comparatively, 2.8% of GBS shares are owned by institutional investors. 24.7% of PolyPid shares are owned by insiders. Comparatively, 0.3% of GBS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

GBS beats PolyPid on 6 of the 11 factors compared between the two stocks.

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.