Genomic Health (NASDAQ: GHDX) and CareDx (NASDAQ:CDNA) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Risk and Volatility
Genomic Health has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, CareDx has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
This table compares Genomic Health and CareDx’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genomic Health||$340.75 million||4.00||-$3.85 million||$0.01||3,852.00|
|CareDx||$48.32 million||8.44||-$55.46 million||($0.77)||-15.01|
Genomic Health has higher revenue and earnings than CareDx. CareDx is trading at a lower price-to-earnings ratio than Genomic Health, indicating that it is currently the more affordable of the two stocks.
This table compares Genomic Health and CareDx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
89.9% of Genomic Health shares are held by institutional investors. Comparatively, 51.9% of CareDx shares are held by institutional investors. 45.8% of Genomic Health shares are held by company insiders. Comparatively, 5.4% of CareDx shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Genomic Health and CareDx, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Genomic Health currently has a consensus target price of $32.86, indicating a potential downside of 14.70%. CareDx has a consensus target price of $9.38, indicating a potential downside of 18.90%. Given Genomic Health’s higher probable upside, research analysts plainly believe Genomic Health is more favorable than CareDx.
Genomic Health beats CareDx on 10 of the 13 factors compared between the two stocks.
About Genomic Health
Genomic Health, Inc., a healthcare company, provides actionable genomic information to personalize cancer treatment decisions worldwide. It develops and commercializes genomic-based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. The company offers the Oncotype DX invasive breast cancer test that is used for early stage invasive breast cancer patients to predict the breast cancer recurrence and chemotherapy benefit. It also provides the Oncotype DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease, as well as for use in patients with stage III disease treated with oxaliplatin-containing adjuvant therapy. In addition, the company provides the Oncotype DX tests for patients with ductal carcinoma in situ, a pre-invasive form of breast cancer; the Oncotype DX prostate cancer test, which provides a genomic prostate score to predict disease aggressiveness in men with low risk disease, as well as used to enhance treatment decisions for prostate cancer patients in conjunction with the Gleason score or tumor grading; and Oncotype DX AR-V7 Nucleus Detect test for men with metastatic castration-resistant prostate cancer. The company offers its products through a network of distributors. Genomic Health, Inc. has collaboration agreement with Epic Sciences, Inc.; license and development agreement with Biocartis N.V.; license agreement with Cleveland Diagnostics, Inc.; and a research collaboration agreement with Janssen Pharmaceuticals. The company was founded in 2000 and is based in Redwood City, California.
CareDx, Inc., a transplant diagnostics company, together with its subsidiaries, engages in the discovery, development, and commercialization of diagnostic surveillance solutions for transplant patients worldwide. It operates through two segments, Post-Transplant Diagnostics and Pre-Transplant Diagnostics. The Post-Transplant Diagnostics segment develops and provides a diagnostic surveillance testing solution for heart and kidney transplant recipients. It offers AlloMap, a heart transplant molecular test; and AlloSure, a donor-derived cell free DNA test initially used for kidney transplant patients. The Pre-Transplant Diagnostics segment develops, manufactures, markets, and sells products that increase the chance of successful transplants by facilitating a match between a donor and a recipient of stem cells and organs. It sells Olerup SSP, which is used to type human leukocyte antigen (HAL) alleles based on sequence-specific primer technology; Olerup QTYPE, a test kit for sequence based HLA typing; Olerup SBT, a test kit for sequence based HLA typing; and XM-ONE, a test that identifies a patient's antigens against HLA Class I or Class II, as well as antibodies against a donor's endothelium. This segment offers its products directly to customers, as well as through third-party distributors. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. CareDx, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.
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