Analyzing CannLabs (OTCMKTS:CANL) & CareDx (NASDAQ:CDNA)

CannLabs (OTCMKTS:CANL) 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 risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares CannLabs and CareDx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannLabs	N/A	N/A	N/A	N/A	N/A
CareDx	$312.78 million	3.53	-$190.28 million	($2.70)	-7.63

CannLabs has higher earnings, but lower revenue than CareDx.

Analyst Ratings

This is a breakdown of current recommendations for CannLabs and CareDx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannLabs	0	0	0	0	0.00
CareDx	1	2	4	0	2.43

CareDx has a consensus target price of $29.60, indicating a potential upside of 43.62%. Given CareDx’s stronger consensus rating and higher probable upside, analysts clearly believe CareDx is more favorable than CannLabs.

Risk & Volatility

CannLabs has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, CareDx has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares CannLabs and CareDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CannLabs	N/A	N/A	N/A
CareDx	-45.90%	-53.70%	-30.42%

Summary

CareDx beats CannLabs on 5 of the 8 factors compared between the two stocks.

About CannLabs

CannLabs, Inc. provides cannabis testing laboratory services in the United States. Its testing services include potency testing, residual solvent analysis, microbiological testing, pesticide testing, heavy metals testing, nutrient analysis, terpenes analysis, shelf-life/stability studies, gene expression testing, and genotyping/phenotyping testing. The company also offers data/analytics and consulting, as well as education services. CannLabs, Inc. was incorporated in 2010 and is based in Denver, Colorado.

About CareDx

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.