Centogene (NASDAQ:CNTG) and Veracyte (NASDAQ:VCYT) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Centogene and Veracyte, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centogene 0 0 4 0 3.00
Veracyte 0 0 3 0 3.00

Centogene presently has a consensus target price of $21.50, indicating a potential upside of 18.20%. Veracyte has a consensus target price of $32.33, indicating a potential upside of 34.55%. Given Veracyte’s higher possible upside, analysts plainly believe Veracyte is more favorable than Centogene.

Institutional and Insider Ownership

8.3% of Centogene shares are held by institutional investors. 8.3% of Veracyte shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Centogene and Veracyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centogene N/A N/A N/A
Veracyte -18.36% -9.68% -8.49%

Earnings & Valuation

This table compares Centogene and Veracyte’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centogene $54.64 million 6.61 -$23.36 million ($1.46) -12.46
Veracyte $120.37 million 9.99 -$12.60 million ($0.27) -89.00

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

About Centogene

Centogene B.V. operates as a commercial-stage rare disease company worldwide. It focuses on transforming clinical and genetic data into medical solutions for patients, physicians, and pharmaceutical companies. The company develops rare disease platform, a data repository, which includes epidemiologic, phenotypic, and heterogenetic data that enhances methods for identifying and monitoring rare hereditary diseases and provide solutions that accelerate the development of orphan drugs. It operates through two segments, Pharmaceutical and Diagnostics. The Pharmaceutical segment offers various services, including early patient recruitment and identification, epidemiological insights, biomarker discovery, and patient monitoring. The Diagnostics segment provides genetic sequencing and diagnostics services to physicians, laboratories, or hospitals directly or through distributors. Centogene B.V. was founded in 2006 and is headquartered in Rostock, Germany.

About Veracyte

Veracyte, Inc. operates as a genomic diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas solutions for a complex landscape in thyroid nodule diagnosis to physicians; Percepta Bronchial Genomic Classifier solution for use in lung cancer diagnosis; and Envisia Genomic Classifier solution for the diagnosis of idiopathic pulmonary fibrosis. It sells its products through product specialists, account managers, and medical science specialists. Veracyte, Inc. has a strategic collaboration with Johnson & Johnson, LLC and Johnson & Johnson's Lung Cancer Initiative to advance diagnostics of a nasal swab test for early lung cancer detection; a research collaboration with Loxo Oncology for the development of therapies for patients with genetically defined cancers; and an agreement with Johnson & Johnson Services, Inc. for the development and commercialization of novel diagnostic tests to detect lung cancer. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.

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