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

Institutional & Insider Ownership

7.4% of Interpace Diagnostics Group shares are owned by institutional investors. 0.7% of Interpace Diagnostics Group shares are owned by insiders. Comparatively, 3.5% of Wageworks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $13.76 million 2.21 -$10.89 million ($0.96) -1.43
Wageworks $434.87 million 5.92 $81.87 million $1.09 59.50

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Interpace Diagnostics Group and Wageworks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 1 0 3.00
Wageworks 0 1 4 0 2.80

Interpace Diagnostics Group presently has a consensus target price of $5.00, suggesting a potential upside of 264.96%. Wageworks has a consensus target price of $80.30, suggesting a potential upside of 23.82%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Interpace Diagnostics Group is more favorable than Wageworks.

Profitability

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

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -37.08% -32.06% -11.22%
Wageworks 15.94% 15.06% 5.51%

Risk and Volatility

Interpace Diagnostics Group has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Wageworks has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Summary

Wageworks beats Interpace Diagnostics Group on 9 of the 13 factors compared between the two stocks.

About Interpace Diagnostics Group

Interpace Diagnostics Group, Inc., formerly PDI, Inc., is focused on developing and commercializing molecular diagnostic tests principally focused on early detection of high potential progressors to cancer and leveraging the latest technology and personalized medicine for patient diagnosis and management. The Company operates through molecular diagnostics segment. It offers molecular tests, such as PancraGen, which is a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment utilizing its PathFinder platform; ThyGenX, which assesses thyroid nodules for risk of malignancy, and ThyraMIR, which assesses thyroid nodules risk of malignancy utilizing a gene expression assay. Through its molecular diagnostics business, the Company provides diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers, which are focused on early detection of cancer.

About Wageworks

WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.

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