Analyzing Privia Health Group (NASDAQ:PRVA) and Fulgent Genetics (NASDAQ:FLGT)

Fulgent Genetics (NASDAQ:FLGT) and Privia Health Group (NASDAQ:PRVA) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

48.1% of Fulgent Genetics shares are held by institutional investors. Comparatively, 94.5% of Privia Health Group shares are held by institutional investors. 31.8% of Fulgent Genetics shares are held by company insiders. Comparatively, 10.7% of Privia Health Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Fulgent Genetics and Privia Health Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulgent Genetics	-13.62%	-2.55%	-2.36%
Privia Health Group	0.89%	2.52%	1.47%

Earnings & Valuation

This table compares Fulgent Genetics and Privia Health Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulgent Genetics	$315.55 million	2.30	-$42.71 million	($1.39)	-16.86
Privia Health Group	$1.74 billion	1.56	$14.39 million	$0.13	169.15

Privia Health Group has higher revenue and earnings than Fulgent Genetics. Fulgent Genetics is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Fulgent Genetics and Privia Health Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulgent Genetics	1	1	2	1	2.60
Privia Health Group	0	3	13	0	2.81

Fulgent Genetics currently has a consensus price target of $32.00, suggesting a potential upside of 36.52%. Privia Health Group has a consensus price target of $30.50, suggesting a potential upside of 38.70%. Given Privia Health Group’s stronger consensus rating and higher probable upside, analysts clearly believe Privia Health Group is more favorable than Fulgent Genetics.

Volatility and Risk

Fulgent Genetics has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Privia Health Group beats Fulgent Genetics on 11 of the 15 factors compared between the two stocks.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. 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 El Monte, California.

About Privia Health Group

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.