Critical Analysis: Bionano Genomics (NASDAQ:BNGO) & Personalis (NASDAQ:PSNL)

Personalis (NASDAQ:PSNL) and Bionano Genomics (NASDAQ:BNGO) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Personalis and Bionano Genomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Personalis	-153.84%	-46.47%	-35.30%
Bionano Genomics	-106.58%	-78.78%	-48.54%

Valuation & Earnings

This table compares Personalis and Bionano Genomics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Personalis	$69.67 million	23.82	-$81.27 million	($1.09)	-14.54
Bionano Genomics	$28.51 million	0.47	-$26.40 million	($3.02)	-0.37

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

Volatility & Risk

Personalis has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500. Comparatively, Bionano Genomics has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Institutional and Insider Ownership

61.9% of Personalis shares are held by institutional investors. Comparatively, 11.3% of Bionano Genomics shares are held by institutional investors. 4.2% of Personalis shares are held by company insiders. Comparatively, 0.7% of Bionano Genomics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Personalis and Bionano Genomics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Personalis	1	7	3	0	2.18
Bionano Genomics	1	0	1	0	2.00

Personalis presently has a consensus target price of $14.54, indicating a potential downside of 8.29%. Bionano Genomics has a consensus target price of $6.00, indicating a potential upside of 430.97%. Given Bionano Genomics’ higher probable upside, analysts plainly believe Bionano Genomics is more favorable than Personalis.

Summary

Personalis beats Bionano Genomics on 10 of the 14 factors compared between the two stocks.

About Personalis

Personalis, Inc. develops and markets advanced cancer genomic tests and analytics primarily in the United States, Europe, and the Asia-Pacific. Its tests and analytics are used by pharmaceutical companies for translational research, biomarker discovery, and development of personalized cancer therapies, as well as advanced tests are used by physicians to detect cancer recurrence, monitor cancer evolution, and uncover insights for therapy selection. The company offers NeXT Personal, a tumor-informed liquid biopsy test for detection of minimal residual disease (MRD) and recurrence in cancer; and ImmunoID NeXT, a tissue-based test that combines whole exome (DNA) and whole transcriptome (RNA) sequencing data with advanced analytics to provide a multi-dimensional view of the tumor and the tumor microenvironment from a single sample. It also provides NeXT Personal Dx, a tumor-informed liquid biopsy test for detection of MRD and recurrence in cancer; and NeXT Dx, a comprehensive tumor profiling test that unlocks the entire exome (DNA) and transcriptome (RNA) with matched tumor-normal analysis. In addition, the company performs whole exome sequencing (WES) of cancer tissue and matched blood samples for diagnostic companies as an input to their products; and whole genome sequencing (WGS) on human samples for research projects, such as population sequencing initiatives, as well as offers sequencing and data analysis services to support population sequencing initiatives. Its customers include pharmaceutical companies, biopharmaceutical companies, diagnostics companies, universities, non-profits, government entities, and patients. The company was incorporated in 2011 and is headquartered in Fremont, California.

About Bionano Genomics

Bionano Genomics, Inc. provides genome analysis software that enables genomics labs to analyze and interpret data across a range of platforms to generate informative data visualizations for streamlined and simple reporting of causal variants. It offers Saphyr, a sample-to-result solution for structural variation analysis by optical genome mapping for genome analysis and understanding of genetic variation and function; Saphyr instrument, a single-molecule imager; Saphyr Chip, a consumable that packages the nanochannel arrays for DNA linearization; and Bionano Prep Kits and DNA labeling kits, which provide the reagents and protocols for extracting and labeling ultra-high molecular weight DNA. The company also provides Saphyr and Bionano compute servers; and VIA software, which offers one system for analysis and interpretation of genomic variants from microarray and next-generation sequencing data for cytogenetics and molecular genetics. In addition, it offers testing and laboratory services comprising FirstStepDx PLUS, a chromosomal microarray for identifying an underlying genetic cause in individuals with autism spectrum disorder, developmental delay, and intellectual disability; Fragile X syndrome (FXS) testing services; NextStepDx PLUS, a exome sequencing test to identify genetic variants that are associated with disorders of childhood development; OGM-Dx HemeOne testing; OGM-Dx FSHD, a test for individuals suspected of having FSHD type 1; and OGM-Dx Postnatal Whole Genome SV and OGM-Dx Prenatal Whole Genome SV for comprehensive testing. Bionano Genomics, Inc. was founded in 2003 and is headquartered in San Diego, California.