Roka Bioscience (NASDAQ: ROKA) and Exact Sciences Corporation (NASDAQ:EXAS) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Roka Bioscience and Exact Sciences Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roka Bioscience 0 0 1 0 3.00
Exact Sciences Corporation 0 5 8 0 2.62

Roka Bioscience currently has a consensus target price of $10.00, suggesting a potential upside of 880.39%. Exact Sciences Corporation has a consensus target price of $50.77, suggesting a potential downside of 15.02%. Given Roka Bioscience’s stronger consensus rating and higher probable upside, analysts plainly believe Roka Bioscience is more favorable than Exact Sciences Corporation.

Valuation & Earnings

This table compares Roka Bioscience and Exact Sciences Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Roka Bioscience $7.24 million 0.71 -$30.78 million ($14.20) -0.07
Exact Sciences Corporation $99.38 million 71.97 -$167.21 million ($1.16) -51.50

Roka Bioscience has higher revenue, but lower earnings than Exact Sciences Corporation. Exact Sciences Corporation is trading at a lower price-to-earnings ratio than Roka Bioscience, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.9% of Roka Bioscience shares are owned by institutional investors. Comparatively, 86.0% of Exact Sciences Corporation shares are owned by institutional investors. 29.2% of Roka Bioscience shares are owned by insiders. Comparatively, 4.0% of Exact Sciences Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Roka Bioscience has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, Exact Sciences Corporation has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Roka Bioscience and Exact Sciences Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roka Bioscience -409.83% -121.16% -68.51%
Exact Sciences Corporation -60.71% -30.32% -27.37%

Summary

Exact Sciences Corporation beats Roka Bioscience on 8 of the 13 factors compared between the two stocks.

Roka Bioscience Company Profile

Roka Bioscience, Inc. is a molecular diagnostics company. The Company is focused on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens under the Atlas brand name. The Company offers Atlas Detection Assays and Atlas instrument in the North American food safety testing market and has rights to develop and commercialize its molecular testing solutions for a range of other industrial applications. The detection of foodborne pathogens is accomplished using culture-based assays, immunochemical-based assays and molecular-based assays. The Company sells its Atlas Detection Assays and related consumable supplies for use with its Atlas instruments. The Company’s Atlas instrument is an automated molecular diagnostic testing and a sample-in-result-out instrument that eliminates the need for batch processing and automates all aspects of molecular diagnostic testing on a single, integrated platform.

Exact Sciences Corporation Company Profile

Exact Sciences Corporation is a molecular diagnostics company. The Company focuses on the early detection and prevention of some forms of cancer. It offers a non-invasive screening test called Cologuard for the early detection of colorectal cancer and pre-cancer. Its Cologuard test is a stool-based deoxyribonucleic acid (sDNA) screening test, which utilizes a multi-target approach to detect deoxyribonucleic acid (DNA) and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. The Cologuard test is intended for the qualitative detection of colorectal neoplasia associated DNA markers and for the presence of occult hemoglobin in human stool. It focuses on the development of additional tests for other types of cancer. It is developing a blood-based biomarker test to aid in the early detection of lung cancer in individuals with lung nodules discovered through a computerized tomography (CT) or other scan.

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