Critical Analysis: Natera (NTRA) & TrovaGene (TROV)
Natera (NASDAQ: NTRA) and TrovaGene (NASDAQ:TROV) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Institutional and Insider Ownership
59.8% of Natera shares are held by institutional investors. Comparatively, 9.1% of TrovaGene shares are held by institutional investors. 12.6% of Natera shares are held by company insiders. Comparatively, 7.4% of TrovaGene shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Natera and TrovaGene, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Natera currently has a consensus price target of $15.75, suggesting a potential upside of 31.25%. TrovaGene has a consensus price target of $4.60, suggesting a potential upside of 497.40%. Given TrovaGene’s higher probable upside, analysts clearly believe TrovaGene is more favorable than Natera.
This table compares Natera and TrovaGene’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Natera and TrovaGene’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Natera||$203.71 million||3.14||-$118.85 million||($2.44)||-4.92|
TrovaGene has higher revenue, but lower earnings than Natera. Natera is trading at a lower price-to-earnings ratio than TrovaGene, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Natera has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500. Comparatively, TrovaGene has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Natera beats TrovaGene on 9 of the 13 factors compared between the two stocks.
Natera Company Profile
Natera, Inc. is a diagnostics company. The Company is engaged in the discovery, development and commercialization of genetic testing services. It offers Panorama Non-Invasive Prenatal Test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother; Horizon Carrier Screening to determine carrier status for a large number of severe genetic diseases that could be passed on to the carrier’s children; Spectrum Pre-implantation Genetic Screening and Spectrum Pre-implantation Genetic Diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle to select embryos with the probability of becoming healthy children; Anora Products of Conception test to analyze fetal chromosomes to understand the cause of miscarriage, and Non-Invasive Paternity Testing, to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother’s blood and a blood sample from the alleged father(s).
TrovaGene Company Profile
Trovagene, Inc. (TrovaGene) is a molecular diagnostic company. The Company focuses on the development and commercialization of a molecular diagnostic technology for use in disease detection and monitoring across a range of medical disciplines. Its primary internal focus is to leverage its cell-free molecular diagnostic platform to facilitate improvements in the field of oncology, while its external focus includes entering into license agreements or collaborations to develop its technology in areas, such as infectious disease, transplant medicine and prenatal genetics. It has ongoing clinical collaborations to demonstrate the ability to determine and monitor mutational status and response to therapy in lung, colon, pancreatic and skin cancer. It uses its molecular diagnostic technology for the detection of cell-free deoxyribonucleic acid (DNA) originating from diseased cell death that can be isolated and detected from urine, blood and tissue samples to develop disease management.
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