Natera (NASDAQ: NTRA) and IRIS International (NASDAQ:IRIS) are both small-cap diagnostic & testing substances companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Natera and IRIS International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natera -62.34% -197.09% -68.72%
IRIS International -61.58% -36.70% -29.47%

Insider & Institutional Ownership

60.5% of Natera shares are owned by institutional investors. Comparatively, 68.9% of IRIS International shares are owned by institutional investors. 12.6% of Natera shares are owned by company insiders. Comparatively, 9.7% of IRIS International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Natera and IRIS International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Natera $217.07 million 2.38 -$95.76 million ($2.43) -3.95
IRIS International N/A N/A N/A $0.04 201.25

IRIS International has higher revenue, but lower earnings than Natera. Natera is trading at a lower price-to-earnings ratio than IRIS International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Natera and IRIS International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natera 0 0 4 0 3.00
IRIS International 0 0 0 0 N/A

Natera presently has a consensus price target of $15.00, suggesting a potential upside of 55.44%. Given Natera’s higher possible upside, equities research analysts clearly believe Natera is more favorable than IRIS International.

Summary

IRIS International beats Natera on 5 of the 9 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).

IRIS International Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

Receive News & Stock Ratings for Natera Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Natera Inc. and related stocks with our FREE daily email newsletter.