China Cord Blood Corporation (NYSE: CO) and Cancer Genetics (NASDAQ:CGIX) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

China Cord Blood Corporation has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares China Cord Blood Corporation and Cancer Genetics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Cord Blood Corporation $124.21 million 10.78 $53.01 million $0.29 40.69
Cancer Genetics $27.55 million 1.98 -$11.12 million ($1.05) -2.62

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

Profitability

This table compares China Cord Blood Corporation and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Cord Blood Corporation 22.07% 8.64% 3.50%
Cancer Genetics -68.48% -48.78% -26.29%

Institutional and Insider Ownership

13.3% of China Cord Blood Corporation shares are held by institutional investors. Comparatively, 16.1% of Cancer Genetics shares are held by institutional investors. 21.3% of Cancer Genetics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for China Cord Blood Corporation and Cancer Genetics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Cord Blood Corporation 0 0 0 0 N/A
Cancer Genetics 0 1 2 0 2.67

Cancer Genetics has a consensus price target of $6.00, indicating a potential upside of 118.18%. Given Cancer Genetics’ higher possible upside, analysts clearly believe Cancer Genetics is more favorable than China Cord Blood Corporation.

Summary

China Cord Blood Corporation beats Cancer Genetics on 7 of the 12 factors compared between the two stocks.

China Cord Blood Corporation Company Profile

China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.

Cancer Genetics Company Profile

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

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