Critical Analysis: CareDx (NASDAQ:CDNA) and Agilon Health (NYSE:AGL)

Agilon Health (NYSE:AGLGet Free Report) and CareDx (NASDAQ:CDNAGet Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Agilon Health has a beta of 3, indicating that its stock price is 200% more volatile than the S&P 500. Comparatively, CareDx has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500.

Profitability

This table compares Agilon Health and CareDx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agilon Health -6.09% -146.03% -24.55%
CareDx -2.01% -2.65% -1.96%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Agilon Health and CareDx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agilon Health 2 8 5 0 2.20
CareDx 1 4 1 0 2.00

Agilon Health presently has a consensus target price of $58.73, suggesting a potential downside of 46.82%. CareDx has a consensus target price of $25.00, suggesting a potential upside of 4.19%. Given CareDx’s higher probable upside, analysts clearly believe CareDx is more favorable than Agilon Health.

Valuation & Earnings

This table compares Agilon Health and CareDx”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agilon Health $5.93 billion 0.31 -$391.35 million ($21.56) -5.12
CareDx $379.80 million 3.26 -$21.35 million ($0.16) -149.97

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

Summary

CareDx beats Agilon Health on 7 of the 12 factors compared between the two stocks.

About Agilon Health

(Get Free Report)

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.

About CareDx

(Get Free Report)

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.

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