Veracyte (NASDAQ: VCYT) and InVitae (NYSE:NVTA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Risk & Volatility
Veracyte has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, InVitae has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
69.2% of Veracyte shares are owned by institutional investors. Comparatively, 66.5% of InVitae shares are owned by institutional investors. 13.4% of Veracyte shares are owned by insiders. Comparatively, 9.9% of InVitae shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Veracyte and InVitae’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Veracyte and InVitae’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veracyte||$65.08 million||3.35||-$31.35 million||($0.81)||-7.91|
|InVitae||$25.05 million||18.34||-$100.25 million||($2.56)||-3.39|
Veracyte has higher revenue and earnings than InVitae. Veracyte is trading at a lower price-to-earnings ratio than InVitae, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Veracyte and InVitae, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veracyte currently has a consensus target price of $12.50, indicating a potential upside of 95.01%. InVitae has a consensus target price of $14.33, indicating a potential upside of 65.13%. Given Veracyte’s higher possible upside, equities analysts plainly believe Veracyte is more favorable than InVitae.
Veracyte beats InVitae on 10 of the 12 factors compared between the two stocks.
Veracyte, Inc. is a genomic diagnostics company. The Company uses genomic technology to resolve diagnostic ambiguity. It targets diseases in which patients undergo invasive diagnostic procedures. Its products combine genomic technology, clinical science and machine learning. The Company commercializes over three genomic tests, which are transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis. The Company’s commercial solution, the Afirma Thyroid fine needle aspiration (FNA) Analysis, centers on the Afirma Gene Expression Classifier (GEC). The Afirma GEC is offered directly or as part of a solution that also includes cytopathology. The Company operates in the pulmonology diagnostics market. It offers Percepta Bronchial Genomic Classifier, a genomic test to resolve ambiguity in lung cancer diagnosis. It also offers the Envisia Genomic Classifier, which is designed to help in the assessment of patients suspected to have idiopathic pulmonary fibrosis.
Invitae Corporation utilizes an integrated portfolio of laboratory processes, software tools and informatics capabilities to process deoxyribonucleic acid (DNA)-containing samples, analyze information about patient-specific genetic variation and generate test reports for clinicians and their patients. As of December 31, 2016, the Company’s products consisted of assays totaling over 1,100 genes that could be used for multiple indications, including hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders and other hereditary conditions. The Company offers panels for a range of hereditary conditions in cancer, cardiology, neuromuscular, pediatric and rare diseases. The Company focuses on genetic testing, genome network and genome management. The Company offers full gene sequencing and deletion/duplication analysis as a standard for all of its tests. The Company holds interests in AltaVoice, a patient-centered data company.
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