Analyzing Exagen (NASDAQ:XGN) and InfuSystem (NYSE:INFU)

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

Volatility & Risk

InfuSystem has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Exagen has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.

Earnings & Valuation

This table compares InfuSystem and Exagen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InfuSystem	$143.34 million	1.71	$870,000.00	$0.41	29.63
Exagen	$66.57 million	2.56	-$19.95 million	($0.81)	-8.68

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

Analyst Ratings

This is a summary of recent recommendations and price targets for InfuSystem and Exagen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InfuSystem	0	1	3	0	2.75
Exagen	1	0	7	1	2.89

InfuSystem presently has a consensus target price of $16.67, suggesting a potential upside of 37.17%. Exagen has a consensus target price of $9.62, suggesting a potential upside of 36.91%. Given InfuSystem’s higher possible upside, equities research analysts plainly believe InfuSystem is more favorable than Exagen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InfuSystem	1.12%	2.78%	1.41%
Exagen	-26.61%	-104.46%	-28.93%

Insider and Institutional Ownership

71.1% of InfuSystem shares are held by institutional investors. Comparatively, 75.2% of Exagen shares are held by institutional investors. 10.8% of InfuSystem shares are held by insiders. Comparatively, 10.4% of Exagen shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

InfuSystem beats Exagen on 9 of the 15 factors compared between the two stocks.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

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.