Analyzing Champions Oncology (NASDAQ:CSBR) & Illumina (NASDAQ:ILMN)

Champions Oncology (NASDAQ:CSBR) and Illumina (NASDAQ:ILMN) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Champions Oncology and Illumina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champions Oncology	-1.82%	-25.77%	-3.71%
Illumina	18.36%	29.84%	12.17%

Volatility and Risk

Champions Oncology has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Illumina has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Champions Oncology and Illumina”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champions Oncology	$59.42 million	1.20	-$1.17 million	($0.08)	-64.08
Illumina	$4.34 billion	8.46	$850.00 million	$5.36	45.40

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

Insider and Institutional Ownership

41.3% of Champions Oncology shares are owned by institutional investors. Comparatively, 89.4% of Illumina shares are owned by institutional investors. 46.3% of Champions Oncology shares are owned by company insiders. Comparatively, 2.9% of Illumina shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Champions Oncology and Illumina, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champions Oncology	1	0	0	0	1.00
Illumina	2	6	10	0	2.44

Illumina has a consensus target price of $199.12, indicating a potential downside of 18.17%. Given Illumina’s stronger consensus rating and higher possible upside, analysts clearly believe Illumina is more favorable than Champions Oncology.

Summary

Illumina beats Champions Oncology on 13 of the 14 factors compared between the two stocks.

About Champions Oncology

Champions Oncology, Inc. engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. The company was founded by James M. Martell and David Sidransky on June 4, 1985 and is headquartered in Hackensack, NJ.

About Illumina

Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services; and Galleri, a multi-cancer early detection test. In addition, the company is developing solutions to help accelerate cancer diagnoses, blood-based detection for minimal residual disease, and other post-diagnostic applications. The company serves genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. It markets and distributes its products directly to customers, as well as through life-science distributors. Illumina, Inc. was incorporated in 1998 and is based in San Diego, California.