Digiliti Money Group (DGLT) versus Veracyte (VCYT) Critical Comparison

Digiliti Money Group (OTCMKTS: DGLT) and Veracyte (NASDAQ:VCYT) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

11.3% of Digiliti Money Group shares are owned by institutional investors. Comparatively, 68.8% of Veracyte shares are owned by institutional investors. 50.9% of Digiliti Money Group shares are owned by insiders. Comparatively, 13.4% of Veracyte shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Digiliti Money Group has a beta of -2.01, meaning that its stock price is 301% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Profitability

This table compares Digiliti Money Group and Veracyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digiliti Money Group N/A N/A N/A
Veracyte -38.19% -52.99% -29.50%

Valuation & Earnings

This table compares Digiliti Money Group and Veracyte’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digiliti Money Group $7.97 million 0.11 -$15.16 million ($6.05) -0.01
Veracyte $65.08 million 3.56 -$31.35 million ($0.80) -8.51

Digiliti Money Group has higher earnings, but lower revenue than Veracyte. Veracyte is trading at a lower price-to-earnings ratio than Digiliti Money Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Digiliti Money Group and Veracyte, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digiliti Money Group 0 0 1 0 3.00
Veracyte 0 2 3 0 2.60

Digiliti Money Group currently has a consensus target price of $6.00, suggesting a potential upside of 6,566.67%. Veracyte has a consensus target price of $12.50, suggesting a potential upside of 83.55%. Given Digiliti Money Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Digiliti Money Group is more favorable than Veracyte.

Summary

Digiliti Money Group beats Veracyte on 8 of the 14 factors compared between the two stocks.

Digiliti Money Group Company Profile

Digiliti Money Group, Inc., formerly Digiliti Money, Inc., is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders.

Veracyte Company Profile

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.

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