Head to Head Analysis: Guardant Health (GH) vs. Genomic Health (GHDX)

Genomic Health (NASDAQ:GHDX) and Guardant Health (NASDAQ:GH) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Genomic Health and Guardant Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genomic Health 1.18% 9.09% 7.41%
Guardant Health N/A N/A N/A

Earnings & Valuation

This table compares Genomic Health and Guardant Health’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 9.49 -$3.85 million $0.01 9,018.00
Guardant Health N/A N/A N/A N/A N/A

Guardant Health has lower revenue, but higher earnings than Genomic Health.

Institutional and Insider Ownership

89.9% of Genomic Health shares are owned by institutional investors. 45.8% of Genomic Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Genomic Health and Guardant Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genomic Health 2 7 1 0 1.90
Guardant Health 0 1 4 0 2.80

Genomic Health presently has a consensus price target of $45.25, suggesting a potential downside of 49.82%. Guardant Health has a consensus price target of $39.50, suggesting a potential upside of 7.16%. Given Guardant Health’s stronger consensus rating and higher probable upside, analysts plainly believe Guardant Health is more favorable than Genomic Health.

Summary

Genomic Health beats Guardant Health on 6 of the 9 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.

About Guardant Health

Guardant Health, Inc. is a precision oncology company, which engages in provision of precision oncology testing and development services. It focuses performing blood tests, vast data sets, and advanced analytics to conquer cancer. The company was founded by Helmy Eltoukhy and AmirAli H. Talasaz in 2012 and is headquartered in Redwood City, CA.

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