Natera (NASDAQ: NTRA) and Cancer Genetics (NASDAQ:CGIX) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This is a breakdown of recent recommendations for Natera and Cancer Genetics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares Natera and Cancer Genetics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natera||$210.94 million||2.85||-$136.31 million||($2.40)||-4.62|
|Cancer Genetics||$29.12 million||1.14||-$20.88 million||($0.79)||-1.52|
Cancer Genetics has lower revenue, but higher earnings 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.
Volatility & Risk
Natera has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
This table compares Natera and Cancer Genetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
67.1% of Natera shares are owned by institutional investors. Comparatively, 17.9% of Cancer Genetics shares are owned by institutional investors. 13.2% of Natera shares are owned by insiders. Comparatively, 21.3% of Cancer Genetics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
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.
About Cancer Genetics
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.
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