Signal Genetics (NASDAQ: MGEN) and BioTelemetry (NASDAQ:BEAT) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

20.7% of Signal Genetics shares are owned by institutional investors. Comparatively, 78.0% of BioTelemetry shares are owned by institutional investors. 44.4% of Signal Genetics shares are owned by company insiders. Comparatively, 9.6% of BioTelemetry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Signal Genetics has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, BioTelemetry has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Signal Genetics and BioTelemetry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signal Genetics -796.06% -84.64% -66.29%
BioTelemetry 21.03% 18.75% 12.70%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signal Genetics 0 0 3 0 3.00
BioTelemetry 0 0 5 0 3.00

Signal Genetics currently has a consensus price target of $23.00, suggesting a potential upside of 159.89%. BioTelemetry has a consensus price target of $45.75, suggesting a potential upside of 26.21%. Given Signal Genetics’ higher probable upside, equities analysts plainly believe Signal Genetics is more favorable than BioTelemetry.

Earnings and Valuation

This table compares Signal Genetics and BioTelemetry’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Signal Genetics $2.63 million 72.29 -$23.96 million N/A N/A
BioTelemetry $211.19 million 5.55 $41.34 million $1.50 24.17

BioTelemetry has higher revenue and earnings than Signal Genetics.

Summary

BioTelemetry beats Signal Genetics on 7 of the 11 factors compared between the two stocks.

About Signal Genetics

Signal Genetics, Inc. is a commercial stage, molecular genetic diagnostic company. The Company is focused on providing diagnostic services that help physicians to make decisions concerning the care of cancer patients. The Company’s diagnostic service is the Myeloma Prognostic Risk Signature (MyPRS) test. The MyPRS test is a microarray-based gene expression profile (GEP), assay that measures the expression level of specific genes and groups of genes that are designed to predict an individual’s long-term clinical outcome/prognosis, giving a basis for personalized treatment options. The Company’s MyPRS test provides a whole-genomic expression profile of a patient’s multiple myeloma (MM). The Company offers MyPRS test in its laboratory located in Little Rock, Arkansas. The Company is licensed to sell its test in all 50 states.

About BioTelemetry

BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).

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