GenMark Diagnostics (NASDAQ:GNMK) and ClearPoint Neuro (NASDAQ:CLPT) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Valuation and Earnings
This table compares GenMark Diagnostics and ClearPoint Neuro's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| GenMark Diagnostics | $88.02 million | 19.92 | $-47,350,000.00 | ($0.82) | -29.26 |
| ClearPoint Neuro | $11.22 million | 40.76 | $-5,540,000.00 | ($0.42) | -52.67 |
ClearPoint Neuro has lower revenue, but higher earnings than GenMark Diagnostics. ClearPoint Neuro is trading at a lower price-to-earnings ratio than GenMark Diagnostics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for GenMark Diagnostics and ClearPoint Neuro, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| GenMark Diagnostics | 0 | 5 | 0 | 0 | 2.00 |
| ClearPoint Neuro | 0 | 0 | 2 | 0 | 3.00 |
GenMark Diagnostics presently has a consensus price target of $22.0125, indicating a potential downside of 8.24%. ClearPoint Neuro has a consensus price target of $35.00, indicating a potential upside of 58.23%. Given ClearPoint Neuro's stronger consensus rating and higher probable upside, analysts clearly believe ClearPoint Neuro is more favorable than GenMark Diagnostics.
Profitability
This table compares GenMark Diagnostics and ClearPoint Neuro's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| GenMark Diagnostics | -16.95% | -39.36% | -13.02% |
| ClearPoint Neuro | -55.55% | -309.91% | -34.06% |
Institutional and Insider Ownership
96.9% of GenMark Diagnostics shares are owned by institutional investors. Comparatively, 6.6% of ClearPoint Neuro shares are owned by institutional investors. 3.3% of GenMark Diagnostics shares are owned by company insiders. Comparatively, 9.2% of ClearPoint Neuro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
GenMark Diagnostics has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500. Comparatively, ClearPoint Neuro has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Summary
ClearPoint Neuro beats GenMark Diagnostics on 8 of the 14 factors compared between the two stocks.
