Myriad Genetics (NASDAQ: MYGN) and Cepheid (NASDAQ:CPHD) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Myriad Genetics and Cepheid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Myriad Genetics 4.26% 10.53% 6.64%
Cepheid -6.88% -11.54% -5.18%

Valuation & Earnings

This table compares Myriad Genetics and Cepheid’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Myriad Genetics $757.30 million 2.30 $122.60 million $0.45 56.78
Cepheid N/A N/A N/A ($0.69) -76.74

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

Volatility & Risk

Myriad Genetics has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Cepheid has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

95.8% of Cepheid shares are held by institutional investors. 6.2% of Myriad Genetics shares are held by company insiders. Comparatively, 4.2% of Cepheid shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Myriad Genetics and Cepheid, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Myriad Genetics 4 8 1 0 1.77
Cepheid 0 10 0 0 2.00

Myriad Genetics currently has a consensus price target of $21.55, indicating a potential downside of 15.67%. Cepheid has a consensus price target of $48.00, indicating a potential downside of 9.35%. Given Cepheid’s stronger consensus rating and higher possible upside, analysts plainly believe Cepheid is more favorable than Myriad Genetics.

Summary

Myriad Genetics beats Cepheid on 7 of the 11 factors compared between the two stocks.

Myriad Genetics Company Profile

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.

Cepheid Company Profile

Cepheid is a molecular diagnostics company. The Company develops, manufactures and markets fully-integrated systems for testing in the Clinical and Non-Clinical markets. The Company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company’s systems integrate these steps and analyze biological samples in test cartridges. Its primary offering is the GeneXpert system, which integrates sample preparation in addition to Deoxyribonucleic acid (DNA) amplification and detection. The GeneXpert system is designed for a range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories. It also offers the SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.

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