Analyzing CareDx (CDNA) and Cancer Genetics (CGIX)

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CareDx (NASDAQ: CDNA) and Cancer Genetics (NASDAQ:CGIX) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Valuation & Earnings

This table compares CareDx and Cancer Genetics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CareDx $48.32 million 11.52 -$55.46 million ($0.77) -20.49
Cancer Genetics $29.12 million 0.98 -$20.88 million ($0.79) -1.30

Cancer Genetics has lower revenue, but higher earnings than CareDx. CareDx is trading at a lower price-to-earnings ratio than Cancer Genetics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CareDx has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares CareDx and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareDx -115.91% -158.93% -19.78%
Cancer Genetics -52.87% -77.26% -38.54%

Institutional and Insider Ownership

52.6% of CareDx shares are owned by institutional investors. Comparatively, 17.0% of Cancer Genetics shares are owned by institutional investors. 3.4% of CareDx shares are owned by insiders. Comparatively, 21.3% of Cancer Genetics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CareDx and Cancer Genetics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareDx 0 0 4 0 3.00
Cancer Genetics 0 3 1 0 2.25

CareDx currently has a consensus price target of $11.88, indicating a potential downside of 24.75%. Cancer Genetics has a consensus price target of $5.00, indicating a potential upside of 385.44%. Given Cancer Genetics’ higher probable upside, analysts clearly believe Cancer Genetics is more favorable than CareDx.

CareDx Company Profile

CareDx, Inc., a transplant diagnostics company, together with its subsidiaries, engages in the discovery, development, and commercialization of diagnostic surveillance solutions for transplant patients worldwide. It operates through two segments, Post-Transplant Diagnostics and Pre-Transplant Diagnostics. The Post-Transplant Diagnostics segment develops and provides a diagnostic surveillance testing solution for heart and kidney transplant recipients. It offers AlloMap, a heart transplant molecular test; and AlloSure, a donor-derived cell free DNA test initially used for kidney transplant patients. The Pre-Transplant Diagnostics segment develops, manufactures, markets, and sells products that increase the chance of successful transplants by facilitating a match between a donor and a recipient of stem cells and organs. It sells Olerup SSP, which is used to type human leukocyte antigen (HAL) alleles based on sequence-specific primer technology; Olerup QTYPE, a test kit for sequence based HLA typing; Olerup SBT, a test kit for sequence based HLA typing; and XM-ONE, a test that identifies a patient's antigens against HLA Class I or Class II, as well as antibodies against a donor's endothelium. This segment offers its products directly to customers, as well as through third-party distributors. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. CareDx, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.

Cancer Genetics Company Profile

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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