InVitae (NVTA) and Veracyte (VCYT) Financial Contrast
InVitae (NYSE: NVTA) and Veracyte (NASDAQ:VCYT) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
This is a breakdown of current recommendations and price targets for InVitae and Veracyte, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InVitae currently has a consensus target price of $14.33, suggesting a potential upside of 72.07%. Veracyte has a consensus target price of $12.50, suggesting a potential upside of 98.41%. Given Veracyte’s higher probable upside, analysts plainly believe Veracyte is more favorable than InVitae.
Earnings and Valuation
This table compares InVitae and Veracyte’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|InVitae||$25.05 million||17.60||-$100.25 million||($2.56)||-3.25|
|Veracyte||$65.08 million||3.30||-$31.35 million||($0.80)||-7.88|
Veracyte has higher revenue and earnings than InVitae. Veracyte is trading at a lower price-to-earnings ratio than InVitae, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
66.5% of InVitae shares are owned by institutional investors. Comparatively, 69.2% of Veracyte shares are owned by institutional investors. 9.9% of InVitae shares are owned by insiders. Comparatively, 13.4% of Veracyte shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
InVitae has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
This table compares InVitae and Veracyte’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Veracyte beats InVitae on 10 of the 12 factors compared between the two stocks.
Invitae Corporation utilizes an integrated portfolio of laboratory processes, software tools and informatics capabilities to process deoxyribonucleic acid (DNA)-containing samples, analyze information about patient-specific genetic variation and generate test reports for clinicians and their patients. As of December 31, 2016, the Company’s products consisted of assays totaling over 1,100 genes that could be used for multiple indications, including hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders and other hereditary conditions. The Company offers panels for a range of hereditary conditions in cancer, cardiology, neuromuscular, pediatric and rare diseases. The Company focuses on genetic testing, genome network and genome management. The Company offers full gene sequencing and deletion/duplication analysis as a standard for all of its tests. The Company holds interests in AltaVoice, a patient-centered data company.
Veracyte, Inc. is a genomic diagnostics company. The Company uses genomic technology to resolve diagnostic ambiguity. It targets diseases in which patients undergo invasive diagnostic procedures. Its products combine genomic technology, clinical science and machine learning. The Company commercializes over three genomic tests, which are transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis. The Company’s commercial solution, the Afirma Thyroid fine needle aspiration (FNA) Analysis, centers on the Afirma Gene Expression Classifier (GEC). The Afirma GEC is offered directly or as part of a solution that also includes cytopathology. The Company operates in the pulmonology diagnostics market. It offers Percepta Bronchial Genomic Classifier, a genomic test to resolve ambiguity in lung cancer diagnosis. It also offers the Envisia Genomic Classifier, which is designed to help in the assessment of patients suspected to have idiopathic pulmonary fibrosis.
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