Fulgent Genetics (NASDAQ: FLGT) and Veracyte (NASDAQ:VCYT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Volatility & Risk
Fulgent Genetics has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
This table compares Fulgent Genetics and Veracyte’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
7.4% of Fulgent Genetics shares are owned by institutional investors. Comparatively, 71.5% of Veracyte shares are owned by institutional investors. 58.8% of Fulgent Genetics shares are owned by insiders. Comparatively, 13.7% of Veracyte shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Fulgent Genetics and Veracyte’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fulgent Genetics||$18.73 million||3.65||-$2.51 million||($0.11)||-34.73|
|Veracyte||$71.95 million||3.58||-$31.00 million||($0.91)||-8.24|
Fulgent Genetics has higher earnings, but lower revenue than Veracyte. Fulgent Genetics is trading at a lower price-to-earnings ratio than Veracyte, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Fulgent Genetics and Veracyte, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fulgent Genetics presently has a consensus target price of $6.00, indicating a potential upside of 57.07%. Veracyte has a consensus target price of $10.60, indicating a potential upside of 41.33%. Given Fulgent Genetics’ higher probable upside, analysts clearly believe Fulgent Genetics is more favorable than Veracyte.
Fulgent Genetics beats Veracyte on 8 of the 13 factors compared between the two stocks.
About Fulgent Genetics
Fulgent Genetics, Inc., together with its subsidiaries, provides genetic testing services to physicians with clinically actionable diagnostic information. Its technology platform integrates data comparison and suppression algorithms, learning software, and genetic diagnostics tools and integrated laboratory processes. The company primarily serves hospitals and medical institutions. It markets its tests through internal sales force, as well as through independent sales representatives in the United States, Canada, the People's Republic of China, and internationally. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in Temple City, California.
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.
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