Critical Survey: CareDx (NASDAQ:CDNA) & Upstream Bio (NASDAQ:UPB)

CareDx (NASDAQ:CDNA) and Upstream Bio (NASDAQ:UPB) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares CareDx and Upstream Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareDx	24.23%	2.87%	2.17%
Upstream Bio	-4,955.67%	-48.40%	-46.57%

Valuation and Earnings

This table compares CareDx and Upstream Bio”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareDx	$379.80 million	12.06	-$21.35 million	$2.39	37.03
Upstream Bio	$3.16 million	60.25	-$143.44 million	($2.90)	-1.20

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

Risk and Volatility

CareDx has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Upstream Bio has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for CareDx and Upstream Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareDx	0	5	3	0	2.38
Upstream Bio	1	2	4	0	2.43

CareDx currently has a consensus target price of $64.40, indicating a potential downside of 27.24%. Upstream Bio has a consensus target price of $29.67, indicating a potential upside of 753.96%. Given Upstream Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Upstream Bio is more favorable than CareDx.

Summary

CareDx beats Upstream Bio on 8 of the 12 factors compared between the two stocks.

About CareDx

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.

About Upstream Bio

Upstream Bio, Inc., a clinical-stage biotechnology company, develops treatments for inflammatory diseases that focuses on severe respiratory disorders. It develops verekitug, a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company also develops therapies to treat severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease. Upstream Bio, Inc. was incorporated in 2021 and is based in Waltham, Massachusetts.