Natera (NASDAQ: NTRA) and Biocept (NASDAQ:BIOC) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Valuation & Earnings
This table compares Natera and Biocept’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Natera||$203.71 million||2.92||-$118.85 million||($2.44)||-4.59|
|Biocept||$5.30 million||6.02||-$18.19 million||($1.26)||-0.95|
Biocept has higher revenue, but lower earnings than Natera. Natera is trading at a lower price-to-earnings ratio than Biocept, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Natera and Biocept, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Natera presently has a consensus target price of $15.75, suggesting a potential upside of 40.75%. Biocept has a consensus target price of $2.50, suggesting a potential upside of 108.33%. Given Biocept’s higher possible upside, analysts plainly believe Biocept is more favorable than Natera.
Insider and Institutional Ownership
59.9% of Natera shares are held by institutional investors. Comparatively, 15.3% of Biocept shares are held by institutional investors. 12.6% of Natera shares are held by insiders. Comparatively, 7.7% of Biocept shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Natera has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500. Comparatively, Biocept has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500.
This table compares Natera and Biocept’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Natera beats Biocept on 6 of the 11 factors compared between the two stocks.
Natera, Inc. is a diagnostics company. The Company is engaged in the discovery, development and commercialization of genetic testing services. It offers Panorama Non-Invasive Prenatal Test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother; Horizon Carrier Screening to determine carrier status for a large number of severe genetic diseases that could be passed on to the carrier’s children; Spectrum Pre-implantation Genetic Screening and Spectrum Pre-implantation Genetic Diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle to select embryos with the probability of becoming healthy children; Anora Products of Conception test to analyze fetal chromosomes to understand the cause of miscarriage, and Non-Invasive Paternity Testing, to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother’s blood and a blood sample from the alleged father(s).
Biocept, Inc. is an early commercial-stage molecular oncology diagnostics company. The Company develops and commercializes circulating tumor cell (CTC) and circulating tumor deoxyribonucleic acid (ctDNA), assays utilizing a standard blood sample, or liquid biopsy. The Company’s Target-Selector offering is based on an internally developed, microfluidics-based CTC capture and analysis platform, with enabling features that change how CTC testing can be used by clinicians by providing biomarker detection and monitoring requiring only a standard blood sample. The ctDNA technology enables mutation detection and is applicable to nucleic acid from CTCs or other sample types, such as blood plasma. The Company commercializes its Target-Selector assays for a range of solid tumor indications, such as breast cancer, non-small cell lung cancer (NSCLC), small cell lung cancer (SCLC), gastric cancer, colorectal cancer, prostate cancer and melanoma.
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