Exagen (NASDAQ:XGN – Get Free Report) and Tenet Healthcare (NYSE:THC – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
75.2% of Exagen shares are owned by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are owned by institutional investors. 10.4% of Exagen shares are owned by insiders. Comparatively, 1.0% of Tenet Healthcare shares are owned by 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.
Valuation and Earnings
This table compares Exagen and Tenet Healthcare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exagen | $66.57 million | 3.06 | -$19.95 million | ($0.81) | -10.38 |
| Tenet Healthcare | $21.31 billion | 0.99 | $1.41 billion | $25.93 | 10.08 |
Tenet Healthcare has higher revenue and earnings than Exagen. Exagen is trading at a lower price-to-earnings ratio than Tenet Healthcare, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Exagen and Tenet Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exagen | 1 | 0 | 7 | 1 | 2.89 |
| Tenet Healthcare | 0 | 1 | 18 | 1 | 3.00 |
Exagen currently has a consensus price target of $9.62, suggesting a potential upside of 14.45%. Tenet Healthcare has a consensus price target of $277.89, suggesting a potential upside of 6.29%. Given Exagen’s higher possible upside, equities analysts clearly believe Exagen is more favorable than Tenet Healthcare.
Profitability
This table compares Exagen and Tenet Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exagen | -26.61% | -104.46% | -28.93% |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
Volatility and Risk
Exagen has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Summary
Tenet Healthcare beats Exagen on 10 of the 14 factors compared between the two stocks.
About Exagen
Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, California.
About Tenet Healthcare
Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
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