Myriad Genetics (NASDAQ: MYGN) and WaferGen Bio-systems (NASDAQ:WGBS) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Volatility & Risk

Myriad Genetics has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, WaferGen Bio-systems has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Myriad Genetics and WaferGen Bio-systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Myriad Genetics 2 7 1 0 1.90
WaferGen Bio-systems 0 0 0 0 N/A

Myriad Genetics currently has a consensus target price of $23.78, indicating a potential downside of 35.96%. Given Myriad Genetics’ higher possible upside, equities analysts clearly believe Myriad Genetics is more favorable than WaferGen Bio-systems.

Profitability

This table compares Myriad Genetics and WaferGen Bio-systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Myriad Genetics 2.83% 9.67% 5.75%
WaferGen Bio-systems -153.30% -463.27% -111.39%

Earnings & Valuation

This table compares Myriad Genetics and WaferGen Bio-systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Myriad Genetics $771.40 million 3.29 $97.70 million $0.32 116.03
WaferGen Bio-systems N/A N/A N/A ($6.30) -1.10

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

Insider and Institutional Ownership

49.8% of WaferGen Bio-systems shares are owned by institutional investors. 6.2% of Myriad Genetics shares are owned by insiders. Comparatively, 5.8% of WaferGen Bio-systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Myriad Genetics beats WaferGen Bio-systems on 8 of the 10 factors compared between the two stocks.

About Myriad Genetics

Myriad Genetics, Inc. is a molecular diagnostic company. The Company is engaged in the discovery, development and marketing of transformative molecular diagnostic tests. The Company operates through two segments: diagnostics and other. The diagnostics segment provides testing and collaborative development of testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to enable optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The other segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients, and also includes corporate services, such as finance, human resources, legal and information technology. Its molecular diagnostic tests include myRisk Hereditary Cancer, BRACAnalysis CDx and COLARIS.

About WaferGen Bio-systems

WaferGen Bio-systems, Inc. (WaferGen) is engaged in the development, manufacture and sale of genomic technology solutions for single-cell analysis (SCA) and clinical research. The Company focuses on marketing an open format genetic analysis system, the WaferGen SmartChip System. The Company’s ICELL8 Single-Cell System is a platform that can isolate a range of single cells and process specific cells for analysis, including Next Generation Sequencing (NGS). ICELL8 is based upon the Company’s SmartChip platform, which is also used for profiling and validating molecular biomarkers. The Company’s SmartChip is a micro-fabricated chip comprising a range of massively-parallel micro wells that are physically separated from each other. It offers SmartChip System Capabilities, SmartChip Single-Cell Isolation System, SmartChip Target Enrichment (TE) System and Apollo 324 Library Preparation.

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