Cancer Genetics (NASDAQ: CGIX) and Davita (NYSE:DVA) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Cancer Genetics and Davita, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cancer Genetics 0 1 3 0 2.75
Davita 1 5 3 2 2.55

Cancer Genetics currently has a consensus target price of $6.00, suggesting a potential upside of 207.69%. Davita has a consensus target price of $73.33, suggesting a potential upside of 3.99%. Given Cancer Genetics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cancer Genetics is more favorable than Davita.

Institutional and Insider Ownership

12.7% of Cancer Genetics shares are held by institutional investors. Comparatively, 85.3% of Davita shares are held by institutional investors. 21.3% of Cancer Genetics shares are held by company insiders. Comparatively, 2.1% of Davita shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cancer Genetics and Davita’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cancer Genetics -54.65% -46.21% -24.62%
Davita 3.40% 13.31% 3.55%

Earnings & Valuation

This table compares Cancer Genetics and Davita’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cancer Genetics $27.05 million 2.00 -$15.80 million ($0.97) -2.01
Davita $14.75 billion 0.88 $879.87 million $2.60 27.12

Davita has higher revenue and earnings than Cancer Genetics. Cancer Genetics is trading at a lower price-to-earnings ratio than Davita, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Cancer Genetics has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Davita has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Summary

Davita beats Cancer Genetics on 8 of the 13 factors compared between the two stocks.

About Cancer Genetics

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

About Davita

DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.

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