Invitae (NYSE:NVTA) and Fulgent Genetics (NASDAQ:FLGT) are both mid-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.
Institutional and Insider Ownership
78.6% of Invitae shares are held by institutional investors. Comparatively, 33.4% of Fulgent Genetics shares are held by institutional investors. 2.9% of Invitae shares are held by company insiders. Comparatively, 45.0% of Fulgent Genetics shares are held by company 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.
Earnings and Valuation
This table compares Invitae and Fulgent Genetics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Invitae | $216.82 million | 25.79 | $-241,960,000.00 | ($2.28) | -12.27 |
| Fulgent Genetics | $32.53 million | 62.40 | $-410,000.00 | $0.02 | 3,501.00 |
Fulgent Genetics has lower revenue, but higher earnings than Invitae. Invitae is trading at a lower price-to-earnings ratio than Fulgent Genetics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Invitae and Fulgent Genetics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Invitae | -183.50% | -81.19% | -37.28% |
| Fulgent Genetics | 35.31% | 43.81% | 36.82% |
Volatility and Risk
Invitae has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Invitae and Fulgent Genetics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Invitae | 0 | 3 | 4 | 0 | 2.57 |
| Fulgent Genetics | 1 | 2 | 2 | 0 | 2.20 |
Invitae presently has a consensus target price of $46.1667, suggesting a potential upside of 65.00%. Fulgent Genetics has a consensus target price of $74.40, suggesting a potential upside of 6.26%. Given Invitae's stronger consensus rating and higher possible upside, analysts plainly believe Invitae is more favorable than Fulgent Genetics.
Summary
Fulgent Genetics beats Invitae on 8 of the 14 factors compared between the two stocks.
