First China Pharmaceutical Group (OTCMKTS:FCPG) vs. NeoGenomics (NASDAQ:NEO) Critical Comparison

NeoGenomics (NASDAQ:NEO) and First China Pharmaceutical Group (OTCMKTS:FCPG) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares NeoGenomics and First China Pharmaceutical Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoGenomics	-6.77%	-1.99%	-1.21%
First China Pharmaceutical Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for NeoGenomics and First China Pharmaceutical Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoGenomics	1	2	7	1	2.73
First China Pharmaceutical Group	0	0	0	0	0.00

NeoGenomics currently has a consensus price target of $16.71, indicating a potential upside of 0.33%. Given NeoGenomics’ stronger consensus rating and higher probable upside, equities analysts plainly believe NeoGenomics is more favorable than First China Pharmaceutical Group.

Institutional and Insider Ownership

98.5% of NeoGenomics shares are held by institutional investors. 1.1% of NeoGenomics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NeoGenomics and First China Pharmaceutical Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoGenomics	$727.33 million	2.94	-$108.03 million	($0.40)	-41.65
First China Pharmaceutical Group	N/A	N/A	N/A	N/A	N/A

First China Pharmaceutical Group has lower revenue, but higher earnings than NeoGenomics.

Summary

NeoGenomics beats First China Pharmaceutical Group on 7 of the 10 factors compared between the two stocks.

About NeoGenomics

NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States and the United Kingdom. It operates through Clinical Services and Advanced Diagnostics segments. The company offers testing services to hospitals, academic centers, pathologists, oncologists, clinicians, pharmaceutical companies, and clinical laboratories. It also provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. In addition, the company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.

About First China Pharmaceutical Group

First China Pharmaceutical Group, Inc. operates through its wholly owned subsidiary Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT) is engaged in drug logistics and distribution in Yunnan Province, China through drug stores, medical clinics and hospitals. XYT is a provincial pharmaceutical distributor that offers approximately 5,000 drugs, of which approximately 1,000 are over-the-counter drugs, approximately 1,000 are prescription drugs, approximately 2,000 are prepared Chinese medicines and approximately 1,000 are supplements. The Company’s short term objective is to broaden its product line from 5,000 products to 30,000 and include significantly more Western medicines as well as traditional Chinese drugs and herbs. By expanding its product line six-fold and offering products at a lower price than major competitors, the Company expects to be able to become its customers’ primary distributor, supplying more than 80% of the pharmaceutical products they require.