Genomic Health (NASDAQ: GHDX) and Fulgent Genetics (NASDAQ:FLGT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Risk and Volatility
Genomic Health has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
This table compares Genomic Health and Fulgent Genetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Genomic Health and Fulgent Genetics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Genomic Health presently has a consensus target price of $32.86, suggesting a potential downside of 13.12%. Fulgent Genetics has a consensus target price of $6.00, suggesting a potential upside of 58.31%. Given Fulgent Genetics’ stronger consensus rating and higher probable upside, analysts clearly believe Fulgent Genetics is more favorable than Genomic Health.
Earnings and Valuation
This table compares Genomic Health and Fulgent Genetics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genomic Health||$340.75 million||3.93||-$3.85 million||$0.01||3,782.00|
|Fulgent Genetics||$18.73 million||3.62||-$2.51 million||($0.11)||-34.45|
Fulgent Genetics has lower revenue, but higher earnings than Genomic Health. Fulgent Genetics is trading at a lower price-to-earnings ratio than Genomic Health, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
87.8% of Genomic Health shares are owned by institutional investors. Comparatively, 7.8% of Fulgent Genetics shares are owned by institutional investors. 46.2% of Genomic Health shares are owned by company insiders. Comparatively, 58.8% of Fulgent Genetics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Genomic Health beats Fulgent Genetics on 8 of the 12 factors compared between the two stocks.
About Genomic Health
Genomic Health, Inc., a healthcare company, provides actionable genomic information to personalize cancer treatment decisions worldwide. It develops and commercializes genomic-based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. The company offers the Oncotype DX invasive breast cancer test that is used for early stage invasive breast cancer patients to predict the breast cancer recurrence and chemotherapy benefit. It also provides the Oncotype DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease, as well as for use in patients with stage III disease treated with oxaliplatin-containing adjuvant therapy. In addition, the company provides the Oncotype DX tests for patients with ductal carcinoma in situ, a pre-invasive form of breast cancer; the Oncotype DX prostate cancer test, which provides a genomic prostate score to predict disease aggressiveness in men with low risk disease, as well as used to enhance treatment decisions for prostate cancer patients in conjunction with the Gleason score or tumor grading; and Oncotype DX AR-V7 Nucleus Detect test for men with metastatic castration-resistant prostate cancer. The company offers its products through a network of distributors. Genomic Health, Inc. has collaboration agreement with Epic Sciences, Inc.; license and development agreement with Biocartis N.V.; license agreement with Cleveland Diagnostics, Inc.; and a research collaboration agreement with Janssen Pharmaceuticals. The company was founded in 2000 and is based in Redwood City, California.
About Fulgent Genetics
Fulgent Genetics, Inc., together with its subsidiaries, provides genetic testing services to physicians with clinically actionable diagnostic information. Its technology platform integrates data comparison and suppression algorithms, learning software, and genetic diagnostics tools and integrated laboratory processes. The company primarily serves hospitals and medical institutions. It markets its tests through internal sales force, as well as through independent sales representatives in the United States, Canada, the People's Republic of China, and internationally. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in Temple City, California.
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