Reviewing Digipath (OTCMKTS:DIGP) & NeoGenomics (NASDAQ:NEO)

Digipath (OTCMKTS:DIGP – Get Rating) and NeoGenomics (NASDAQ:NEO – Get Rating) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Risk & Volatility

Digipath has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Digipath and NeoGenomics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digipath	$2.70 million	0.21	-$2.06 million	($0.02)	-0.35
NeoGenomics	$509.73 million	4.54	-$144.25 million	($1.16)	-15.64

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

Profitability

This table compares Digipath and NeoGenomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digipath	-73.57%	N/A	-117.58%
NeoGenomics	-28.30%	-9.15%	-5.31%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Digipath and NeoGenomics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digipath	0	0	0	0	N/A
NeoGenomics	0	4	8	0	2.67

NeoGenomics has a consensus price target of $19.33, indicating a potential upside of 6.58%. Given NeoGenomics’ higher possible upside, analysts clearly believe NeoGenomics is more favorable than Digipath.

Insider & Institutional Ownership

88.2% of NeoGenomics shares are owned by institutional investors. 10.8% of Digipath shares are owned by insiders. Comparatively, 1.0% of NeoGenomics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

NeoGenomics beats Digipath on 8 of the 13 factors compared between the two stocks.

About Digipath

(Get Rating)

DigiPath, Inc. is a service-oriented independent testing laboratory and data analytics company, which engages in the provision of cannabis testing, education, training, and news coverage. The company was founded by Todd Denkin on October 5, 2010 and is headquartered in Las Vegas, NV.

About NeoGenomics

(Get Rating)

NeoGenomics, Inc. is a clinical laboratory company, which engages in cancer genetics diagnostic testing and pharma services. It operates through the Clinical Services and Pharma Services segments. The Clinical Services segment offers cancer testing services to community-based pathologists, hospitals, academic centers, and oncology groups. The Pharma Services segment focuses on supporting pharmaceutical firms in drug development programs by supporting various clinical trials and research. It also provides testing services in support of its pharmaceutical clients’ oncology programs from discovery to commercialization. The company was founded by Michael T. Dent on October 29, 1998 and is headquartered in Fort Myers, FL.