Precipio (NASDAQ:PRPO – Get Free Report) and Prenetics Global (NASDAQ:PRE – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Precipio and Prenetics Global’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precipio | $15.20 million | 0.49 | -$5.85 million | ($3.42) | -1.47 |
| Prenetics Global | $23.23 million | 2.05 | -$62.72 million | ($4.45) | -1.17 |
Precipio has higher earnings, but lower revenue than Prenetics Global. Precipio is trading at a lower price-to-earnings ratio than Prenetics Global, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precipio | 0 | 0 | 0 | 0 | N/A |
| Prenetics Global | 0 | 0 | 1 | 0 | 3.00 |
Prenetics Global has a consensus target price of $9.00, suggesting a potential upside of 72.41%. Given Prenetics Global’s higher possible upside, analysts clearly believe Prenetics Global is more favorable than Precipio.
Risk & Volatility
Precipio has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Prenetics Global has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500.
Insider and Institutional Ownership
10.5% of Precipio shares are held by institutional investors. Comparatively, 25.0% of Prenetics Global shares are held by institutional investors. 10.6% of Precipio shares are held by company insiders. Comparatively, 7.8% of Prenetics Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Precipio and Prenetics Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precipio | -31.00% | -46.12% | -34.19% |
| Prenetics Global | -282.96% | -10.76% | -8.79% |
Summary
Prenetics Global beats Precipio on 8 of the 13 factors compared between the two stocks.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.
About Prenetics Global
Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.
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