Financial Review: TrovaGene (NASDAQ:TROV) versus Natera (NTRA)

TrovaGene (NASDAQ: TROV) and Natera (NASDAQ:NTRA) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

15.1% of TrovaGene shares are held by institutional investors. Comparatively, 59.9% of Natera shares are held by institutional investors. 7.4% of TrovaGene shares are held by company insiders. Comparatively, 12.6% of Natera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares TrovaGene and Natera’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TrovaGene $354,234.00 87.29 -$29.35 million ($1.26) -0.66
Natera $203.71 million 2.92 -$118.85 million ($2.44) -4.59

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

Volatility & Risk

TrovaGene has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Natera has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.

Profitability

This table compares TrovaGene and Natera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrovaGene -10,390.96% -201.07% -85.12%
Natera -62.64% -137.46% -64.82%

Analyst Ratings

This is a summary of current ratings and price targets for TrovaGene and Natera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrovaGene 1 0 2 0 2.33
Natera 0 0 4 0 3.00

TrovaGene currently has a consensus target price of $4.60, suggesting a potential upside of 454.42%. Natera has a consensus target price of $15.75, suggesting a potential upside of 40.75%. Given TrovaGene’s higher possible upside, equities analysts plainly believe TrovaGene is more favorable than Natera.

Summary

Natera beats TrovaGene on 9 of the 13 factors compared between the two stocks.

About TrovaGene

Trovagene, Inc. (TrovaGene) is a molecular diagnostic company. The Company focuses on the development and commercialization of a molecular diagnostic technology for use in disease detection and monitoring across a range of medical disciplines. Its primary internal focus is to leverage its cell-free molecular diagnostic platform to facilitate improvements in the field of oncology, while its external focus includes entering into license agreements or collaborations to develop its technology in areas, such as infectious disease, transplant medicine and prenatal genetics. It has ongoing clinical collaborations to demonstrate the ability to determine and monitor mutational status and response to therapy in lung, colon, pancreatic and skin cancer. It uses its molecular diagnostic technology for the detection of cell-free deoxyribonucleic acid (DNA) originating from diseased cell death that can be isolated and detected from urine, blood and tissue samples to develop disease management.

About Natera

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).

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