Cancer Genetics (NASDAQ: CGIX) and Natera (NASDAQ:NTRA) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
This table compares Cancer Genetics and Natera’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
17.9% of Cancer Genetics shares are owned by institutional investors. Comparatively, 67.1% of Natera shares are owned by institutional investors. 21.3% of Cancer Genetics shares are owned by insiders. Comparatively, 12.6% of Natera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Cancer Genetics and Natera’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cancer Genetics||$29.12 million||0.95||-$20.88 million||($0.79)||-1.27|
|Natera||$210.94 million||2.58||-$136.31 million||($2.40)||-4.19|
Cancer Genetics has higher earnings, but lower revenue than Natera. Natera is trading at a lower price-to-earnings ratio than Cancer Genetics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Cancer Genetics has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Natera has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Cancer Genetics and Natera, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cancer Genetics currently has a consensus target price of $6.00, suggesting a potential upside of 500.00%. Natera has a consensus target price of $14.75, suggesting a potential upside of 46.77%. Given Cancer Genetics’ higher probable upside, equities analysts plainly believe Cancer Genetics is more favorable than Natera.
Natera beats Cancer Genetics on 7 of the 13 factors compared between the two stocks.
Cancer Genetics Company Profile
Cancer Genetics, Inc. develops, commercializes, and provides molecular and biomarker-based tests and services in the United States, India, and China. 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 trials to select candidate populations and reduce adverse drug reactions by providing information regarding genomic factors influencing subject responses to therapeutics. The company's clinical services provide information on diagnosis, prognosis, and predicting treatment outcomes of cancers to guide patient management. Its 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. The company's discovery services provide the tools and testing methods for companies and researchers to identify new molecular-based biomarkers for 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.
Natera Company Profile
Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. It primarily offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus typically with a blood draw from the mother; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases that could be passed on to the carrier's children; and Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora Products of Conception test to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother's blood and a blood sample from the alleged father. In addition, it offers Constellation, a cloud-based software product that allows laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics in order to validate and launch tests. The company offers products through its direct sales force, as well as through a network of approximately 70 laboratory and distribution partners in the United States and internationally. The company was formerly known as Gene Security Network, Inc. and changed its name to Natera, Inc. in 2012. Natera, Inc. was founded in 2003 and is headquartered in San Carlos, California.
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