Contrasting AbCellera Biologics (NASDAQ:ABCL) & Kaya (OTCMKTS:KAYS)

Kaya (OTCMKTS:KAYS) and AbCellera Biologics (NASDAQ:ABCL) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kaya and AbCellera Biologics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaya	0	0	0	0	N/A
AbCellera Biologics	0	1	3	0	2.75

AbCellera Biologics has a consensus price target of $10.33, suggesting a potential upside of 278.51%. Given AbCellera Biologics’ higher probable upside, analysts plainly believe AbCellera Biologics is more favorable than Kaya.

Insider and Institutional Ownership

61.4% of AbCellera Biologics shares are held by institutional investors. 23.5% of Kaya shares are held by insiders. Comparatively, 28.0% of AbCellera Biologics 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.

Volatility and Risk

Kaya has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Kaya and AbCellera Biologics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaya	260.23%	-9.79%	652.87%
AbCellera Biologics	-463.77%	-13.40%	-10.44%

Valuation and Earnings

This table compares Kaya and AbCellera Biologics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaya	$200,000.00	3.91	$1.61 million	$0.02	1.77
AbCellera Biologics	$38.03 million	21.15	-$146.40 million	($0.54)	-5.06

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

Summary

Kaya beats AbCellera Biologics on 7 of the 13 factors compared between the two stocks.

About Kaya

Kaya Holdings, Inc., a vertically integrated legal cannabis enterprise, engages in the operation of psychedelic treatment clinics and medical cannabis dispensaries primarily in the United States. It offers a range of cannabis products, including flower, oils, vape cartridges and cannabis infused confections, baked goods, and beverages. The company also operates retail outlets under the Kaya Shack brand name, as well as offers strain specific cannabis cigarettes under the Kaya Buddies name, and strains of cannabis under the Kaya Farms name. In addition, it is involved in the development of a psychedelic treatment center under The Sacred Mushroom name, that provides its guests access to psilocybin treatments, located in Portland, Oregon. The company was formerly known as Alternative Fuels America, Inc. and changed its name to Kaya Holdings, Inc. in April 2015. Kaya Holdings, Inc. is headquartered in Fort Lauderdale, Florida.

About AbCellera Biologics

AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.