Myriad Genetics (NASDAQ: MYGN) and Cepheid (NASDAQ:CPHD) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitabiliy, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Earnings & Valuation
This table compares Myriad Genetics and Cepheid’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Myriad Genetics||$757.30 million||2.30||$122.60 million||$0.45||56.78|
Myriad Genetics has higher revenue and earnings than Cepheid. Cepheid is trading at a lower price-to-earnings ratio than Myriad Genetics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Myriad Genetics has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Cepheid has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Myriad Genetics and Cepheid, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Myriad Genetics presently has a consensus price target of $21.55, suggesting a potential downside of 15.67%. Cepheid has a consensus price target of $48.00, suggesting a potential downside of 9.35%. Given Cepheid’s stronger consensus rating and higher probable upside, analysts plainly believe Cepheid is more favorable than Myriad Genetics.
Institutional and Insider Ownership
95.8% of Cepheid shares are held by institutional investors. 6.2% of Myriad Genetics shares are held by insiders. Comparatively, 4.2% of Cepheid shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Myriad Genetics and Cepheid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Myriad Genetics beats Cepheid on 7 of the 11 factors compared between the two stocks.
About Myriad Genetics
Myriad Genetics, Inc. is a molecular diagnostic company. The Company is engaged in the discovery, development and marketing of transformative molecular diagnostic tests. The Company operates through two segments: diagnostics and other. The diagnostics segment provides testing and collaborative development of testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to enable optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The other segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients, and also includes corporate services, such as finance, human resources, legal and information technology. Its molecular diagnostic tests include myRisk Hereditary Cancer, BRACAnalysis CDx and COLARIS.
Cepheid is a molecular diagnostics company. The Company develops, manufactures and markets fully-integrated systems for testing in the Clinical and Non-Clinical markets. The Company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company’s systems integrate these steps and analyze biological samples in test cartridges. Its primary offering is the GeneXpert system, which integrates sample preparation in addition to Deoxyribonucleic acid (DNA) amplification and detection. The GeneXpert system is designed for a range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories. It also offers the SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.
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