Veracyte (NASDAQ: CGIX) and Cancer Genetics (NASDAQ:CGIX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares Veracyte and Cancer Genetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Veracyte has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Veracyte and Cancer Genetics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veracyte presently has a consensus price target of $11.00, suggesting a potential downside of 9.09%. Cancer Genetics has a consensus price target of $4.50, suggesting a potential upside of 336.89%. Given Cancer Genetics’ higher probable upside, analysts plainly believe Cancer Genetics is more favorable than Veracyte.
Insider & Institutional Ownership
71.0% of Veracyte shares are held by institutional investors. Comparatively, 17.2% of Cancer Genetics shares are held by institutional investors. 13.7% of Veracyte shares are held by company insiders. Comparatively, 21.3% of Cancer Genetics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Veracyte and Cancer Genetics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veracyte||$71.95 million||5.81||-$31.00 million||($0.91)||-13.30|
|Cancer Genetics||$29.12 million||0.98||-$20.88 million||($0.79)||-1.30|
Cancer Genetics has lower revenue, but higher earnings than Veracyte. Veracyte is trading at a lower price-to-earnings ratio than Cancer Genetics, indicating that it is currently the more affordable of the two stocks.
Veracyte, Inc. operates as a genomic diagnostics company in the United States. The company uses genomic technology to resolve diagnostic uncertainty. It offers Afirma Thyroid FNA Analysis solution; cytopathology testing services; and the Afirma Malignancy Classifiers to manage thyroid nodule patients. The company's products also include Percepta Bronchial Genomic Classifier solution for use in lung cancer screening and diagnosis; and Envisia Genomic Classifier solution for idiopathic pulmonary fibrosis. Veracyte, Inc. sells its products through product specialists, institutional managers, account managers, and medical science specialists. Veracyte, Inc. has research collaboration agreement with Loxo Oncology to develop medicines for patients with genetically defined cancers. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.
About Cancer Genetics
Cancer Genetics, Inc. develops, commercializes, and provides molecular and biomarker-based tests and services in the United States, Europe, and Asia. Its tests enable physicians to personalize the clinical management of each individual patient by providing genomic information to diagnose, monitor, and inform cancer treatment; and enable biotech and pharmaceutical companies involved in oncology and immuno-oncology trials to select candidate populations and reduce adverse drug reactions by providing information regarding genomic factors influencing subject responses to therapeutics. The company's biopharma services offer companies with customized solutions for patient stratification and treatment selection through a suite of molecular- and biomarker-based testing services, customized assay development, and trial design consultation. Its clinical services provide information on diagnosis, prognosis, and predicting treatment outcomes of cancers to guide patient management. The company's discovery services offer the tools and testing methods for companies and researchers to identify and develop new compounds and molecular-based biomarkers for diagnostics and treatment of disease. It serves hospitals, cancer centers, clinics, academic institutions, and government-sponsored research institutions, as well as pharmaceutical and biotech companies performing clinical trials. The company collaborates with oncology centers and community-based hospitals to develop its proprietary diagnostic tests. Cancer Genetics, Inc. was founded in 1999 and is based in Rutherford, New Jersey.
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