Zhongchao (NASDAQ:ZCMD) and Exagen (NASDAQ:XGN) Financial Contrast

Zhongchao (NASDAQ:ZCMD) and Exagen (NASDAQ:XGN) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Zhongchao and Exagen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhongchao	1	0	0	0	1.00
Exagen	1	0	7	1	2.89

Exagen has a consensus target price of $9.62, indicating a potential upside of 40.10%. Given Exagen’s stronger consensus rating and higher probable upside, analysts plainly believe Exagen is more favorable than Zhongchao.

Risk & Volatility

Zhongchao has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500. Comparatively, Exagen has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

Profitability

This table compares Zhongchao and Exagen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhongchao	N/A	N/A	N/A
Exagen	-26.61%	-104.46%	-28.93%

Valuation and Earnings

This table compares Zhongchao and Exagen”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongchao	$11.37 million	0.11	-$6.31 million	N/A	N/A
Exagen	$66.57 million	2.50	-$19.95 million	($0.81)	-8.48

Zhongchao has higher earnings, but lower revenue than Exagen.

Insider and Institutional Ownership

1.7% of Zhongchao shares are owned by institutional investors. Comparatively, 75.2% of Exagen shares are owned by institutional investors. 28.6% of Zhongchao shares are owned by company insiders. Comparatively, 10.4% of Exagen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Exagen beats Zhongchao on 8 of the 13 factors compared between the two stocks.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.

About Exagen

Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, California.