Interpace Diagnostics Group (NASDAQ:IDXG) and ResMed (NYSE:RMD) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Risk and Volatility

Interpace Diagnostics Group has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Dividends

ResMed pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Interpace Diagnostics Group does not pay a dividend. ResMed pays out 41.9% of its earnings in the form of a dividend. ResMed has raised its dividend for 2 consecutive years.

Profitability

This table compares Interpace Diagnostics Group and ResMed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -71.14% -34.58% -25.64%
ResMed 13.49% 24.74% 14.85%

Analyst Ratings

This is a summary of recent ratings and target prices for Interpace Diagnostics Group and ResMed, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 4 0 3.00
ResMed 3 5 3 0 2.00

Interpace Diagnostics Group currently has a consensus price target of $3.44, indicating a potential upside of 117.56%. ResMed has a consensus price target of $68.80, indicating a potential downside of 40.46%. Given Interpace Diagnostics Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Interpace Diagnostics Group is more favorable than ResMed.

Valuation & Earnings

This table compares Interpace Diagnostics Group and ResMed’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $15.90 million 2.80 -$12.21 million ($0.81) -1.95
ResMed $2.34 billion 7.04 $315.58 million $3.53 32.73

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

Institutional & Insider Ownership

12.5% of Interpace Diagnostics Group shares are owned by institutional investors. Comparatively, 63.8% of ResMed shares are owned by institutional investors. 2.8% of Interpace Diagnostics Group shares are owned by insiders. Comparatively, 1.8% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ResMed beats Interpace Diagnostics Group on 11 of the 17 factors compared between the two stocks.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc. develops and commercializes molecular diagnostic tests to detect genetic and other molecular alterations associated with gastrointestinal and endocrine cancers. It offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion molecular test that helps physicians better assess risk of pancreaticobiliary cancers using its proprietary PathFinder platform; ThyGenX, an oncogenic mutation panel that helps identify malignant thyroid nodules; and ThyraMIR, an microRNA gene expression assay that helps to classify risk of cancer in thyroid nodules. The company's customers consist primarily of physicians, hospitals, and clinics. The company was formerly known as PDI, Inc. and changed its name to Interpace Diagnostics Group, Inc. in December 2015. Interpace Diagnostics Group, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

ResMed Company Profile

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; and myAir, a patient engagement application that provides sleep data and a daily score based on their previous night's data, as well as offers business management software and services to medical equipment and home health providers. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

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