Surgical Care Affiliates (NASDAQ: SCAI) and Cancer Genetics (NASDAQ:CGIX) are both healthcare facilities & services – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Surgical Care Affiliates and Cancer Genetics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Surgical Care Affiliates 0 2 0 0 2.00
Cancer Genetics 0 1 2 0 2.67

Surgical Care Affiliates currently has a consensus target price of $50.00, indicating a potential upside of Infinity. Cancer Genetics has a consensus target price of $6.00, indicating a potential upside of 87.50%. Given Surgical Care Affiliates’ higher possible upside, equities research analysts plainly believe Surgical Care Affiliates is more favorable than Cancer Genetics.

Profitability

This table compares Surgical Care Affiliates and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Surgical Care Affiliates 21.52% 13.07% 12.83%
Cancer Genetics -68.48% -48.78% -26.29%

Institutional & Insider Ownership

15.6% of Cancer Genetics shares are held by institutional investors. 3.3% of Surgical Care Affiliates shares are held by insiders. Comparatively, 21.3% of Cancer Genetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Surgical Care Affiliates and Cancer Genetics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Surgical Care Affiliates N/A N/A N/A $0.86 N/A
Cancer Genetics $27.05 million 2.34 -$15.80 million ($1.05) -3.05

Surgical Care Affiliates has higher revenue, but lower earnings than Cancer Genetics. Cancer Genetics is trading at a lower price-to-earnings ratio than Surgical Care Affiliates, indicating that it is currently the more affordable of the two stocks.

Surgical Care Affiliates Company Profile

Surgical Care Affiliates, Inc. is a provider of solutions to physicians, health plans and health systems to optimize surgical care. The Company offers tools and systems in the areas of clinical benchmarking, clinical best practices, operating efficiency, care coordination and supply chain management. As of December 31, 2016, the Company operated a network of surgical facilities in the United States, which included 197 ambulatory surgery centers (ASCs) and seven surgical hospitals in partnership with approximately 3,000 physician partners. The Company’s operations consist of its ownership and management of ASCs and surgical hospitals. Its ASCs provide the facilities, equipment, supplies and clinical support staff necessary to provide non-emergency surgical services to patients not requiring hospitalization. Its surgical hospitals allow physicians to perform a range of surgical procedures, including surgeries, and allow patients to stay in the hospital for several nights to recover.

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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