Contrasting Avid Bioservices (NASDAQ:CDMO) & XOMA (NASDAQ:XOMAO)

XOMA (NASDAQ:XOMAO) and Avid Bioservices (NASDAQ:CDMO) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

97.2% of Avid Bioservices shares are owned by institutional investors. 2.4% of Avid Bioservices shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares XOMA and Avid Bioservices”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOMA	$9.81 million	N/A	N/A	N/A	N/A
Avid Bioservices	$142.36 million	5.13	-$140.75 million	($2.21)	-5.20

XOMA has higher earnings, but lower revenue than Avid Bioservices.

Analyst Ratings

This is a summary of current recommendations for XOMA and Avid Bioservices, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOMA	0	0	0	0	N/A
Avid Bioservices	0	1	4	0	2.80

Avid Bioservices has a consensus target price of $13.50, suggesting a potential upside of 17.49%. Given Avid Bioservices’ higher possible upside, analysts plainly believe Avid Bioservices is more favorable than XOMA.

Profitability

This table compares XOMA and Avid Bioservices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOMA	N/A	N/A	N/A
Avid Bioservices	-101.26%	-16.53%	-5.60%

Summary

Avid Bioservices beats XOMA on 5 of the 8 factors compared between the two stocks.

About XOMA

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

About Avid Bioservices

Avid Bioservices, Inc. operates as a contract development and manufacturing organization for the biotechnology and biopharmaceutical industries in the United States. It provides process development and current good manufacturing practice clinical and commercial manufacturing services of biologics, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, regulatory submission and support, upstream and downstream development and optimization, analytical methods development, cell line development, testing, and characterization services. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was incorporated in 1981 and is based in Tustin, California.