Financial Analysis: Getinge (OTCMKTS:GNGBY) and GeneDx (NASDAQ:WGS)

Getinge (OTCMKTS:GNGBY) and GeneDx (NASDAQ:WGS) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getinge	8.20%	11.55%	6.15%
GeneDx	-23.41%	4.12%	2.26%

Risk and Volatility

Getinge has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Insider & Institutional Ownership

61.7% of GeneDx shares are held by institutional investors. 25.2% of GeneDx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	4	0	0	2.00
GeneDx	1	1	7	0	2.67

GeneDx has a consensus price target of $90.86, suggesting a potential upside of 31.56%. Given GeneDx’s stronger consensus rating and higher possible upside, analysts plainly believe GeneDx is more favorable than Getinge.

Valuation & Earnings

This table compares Getinge and GeneDx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	2.08	$230.87 million	$1.10	24.85
GeneDx	$427.54 million	4.82	-$21.02 million	($3.64)	-18.97

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

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

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.