Digiliti Money (OTCMKTS: DGLT) and CareDx (NASDAQ:CDNA) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

6.2% of Digiliti Money shares are owned by institutional investors. Comparatively, 27.9% of CareDx shares are owned by institutional investors. 50.9% of Digiliti Money shares are owned by company insiders. Comparatively, 5.4% of CareDx shares are owned 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.

Risk & Volatility

Digiliti Money has a beta of -1.62, meaning that its share price is 262% less volatile than the S&P 500. Comparatively, CareDx has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Digiliti Money and CareDx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digiliti Money -147.73% N/A -199.21%
CareDx -84.14% -157.00% -23.52%

Earnings and Valuation

This table compares Digiliti Money and CareDx’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Digiliti Money $7.97 million 0.27 -$15.16 million ($6.05) -0.04
CareDx $40.63 million 4.19 -$39.46 million ($1.81) -3.29

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Digiliti Money and CareDx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digiliti Money 0 0 1 0 3.00
CareDx 0 0 3 0 3.00

Digiliti Money currently has a consensus target price of $6.00, indicating a potential upside of 2,627.27%. CareDx has a consensus target price of $7.83, indicating a potential upside of 31.43%. Given Digiliti Money’s higher possible upside, equities analysts plainly believe Digiliti Money is more favorable than CareDx.

Summary

CareDx beats Digiliti Money on 8 of the 12 factors compared between the two stocks.

About Digiliti Money

Digiliti Money Group, Inc., formerly Digiliti Money, Inc., is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders.

About CareDx

CareDx, Inc. is a molecular diagnostics company. The Company is focused on the discovery, development and commercialization of clinically differentiated diagnostic surveillance solutions for transplant patients. The Company’s commercialized testing solution, the AlloMap heart transplant molecular test (AlloMap), is a gene expression test that helps clinicians monitor and identify heart transplant recipients with stable graft function having a low probability of moderate/severe acute cellular rejection. Its products under development for transplant monitoring include AlloSure, a development-stage transplant surveillance solution, which applies next generation sequencing to detect and quantitate genetic differences between donor-derived cell-free deoxyribonucleic acid (dd-cfDNA) in the blood stream emanating from the donor heart. It offers the AlloMap Score Variability service, which provides complementary information to help personalize long-term care of heart transplant recipients.

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