Reviewing Natera (NTRA) & The Competition

Natera (NASDAQ: NTRA) is one of 21 publicly-traded companies in the “Medical laboratories” industry, but how does it weigh in compared to its peers? We will compare Natera to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Natera and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natera 0 0 5 0 3.00
Natera Competitors 108 455 531 17 2.41

Natera presently has a consensus price target of $14.75, indicating a potential upside of 36.70%. As a group, “Medical laboratories” companies have a potential upside of 15.05%. Given Natera’s stronger consensus rating and higher possible upside, research analysts plainly believe Natera is more favorable than its peers.

Earnings & Valuation

This table compares Natera and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Natera $210.94 million -$136.31 million -4.50
Natera Competitors $1.13 billion $76.65 million 215.81

Natera’s peers have higher revenue and earnings than Natera. Natera is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Natera and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natera -64.61% -357.12% -71.89%
Natera Competitors -118.65% -181.74% -42.76%

Risk & Volatility

Natera has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Natera’s peers have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

67.1% of Natera shares are owned by institutional investors. Comparatively, 50.4% of shares of all “Medical laboratories” companies are owned by institutional investors. 13.2% of Natera shares are owned by company insiders. Comparatively, 18.5% of shares of all “Medical laboratories” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Natera peers beat Natera on 7 of the 13 factors compared.

About Natera

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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