Reviewing AdaptHealth (NASDAQ:AHCO) and GeneDx (NASDAQ:WGS)

AdaptHealth (NASDAQ:AHCO) and GeneDx (NASDAQ:WGS) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares AdaptHealth and GeneDx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdaptHealth	$3.24 billion	0.25	-$70.79 million	($1.71)	-3.52
GeneDx	$427.54 million	4.44	-$21.02 million	($3.64)	-17.48

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

Insider and Institutional Ownership

82.7% of AdaptHealth shares are owned by institutional investors. Comparatively, 61.7% of GeneDx shares are owned by institutional investors. 1.9% of AdaptHealth shares are owned by company insiders. Comparatively, 25.2% of GeneDx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for AdaptHealth and GeneDx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdaptHealth	1	1	7	0	2.67
GeneDx	1	1	7	0	2.67

AdaptHealth currently has a consensus target price of $10.14, suggesting a potential upside of 68.49%. GeneDx has a consensus target price of $90.86, suggesting a potential upside of 42.83%. Given AdaptHealth’s higher probable upside, research analysts clearly believe AdaptHealth is more favorable than GeneDx.

Profitability

This table compares AdaptHealth and GeneDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdaptHealth	-7.07%	3.36%	1.16%
GeneDx	-23.41%	4.12%	2.26%

Volatility and Risk

AdaptHealth has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, GeneDx has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.