Vermillion (NASDAQ: VRML) and Veracyte (NASDAQ:VCYT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
This table compares Vermillion and Veracyte’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Vermillion and Veracyte, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vermillion presently has a consensus price target of $2.00, suggesting a potential upside of 72.25%. Veracyte has a consensus price target of $13.00, suggesting a potential upside of 61.09%. Given Vermillion’s higher probable upside, equities analysts plainly believe Vermillion is more favorable than Veracyte.
Earnings and Valuation
This table compares Vermillion and Veracyte’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vermillion||$3.05 million||21.38||-$10.50 million||N/A||N/A|
|Veracyte||$71.70 million||3.81||-$20.10 million||($0.80)||-10.09|
Vermillion has higher revenue, but lower earnings than Veracyte.
Institutional & Insider Ownership
35.7% of Vermillion shares are held by institutional investors. Comparatively, 63.6% of Veracyte shares are held by institutional investors. 3.7% of Vermillion shares are held by insiders. Comparatively, 13.4% of Veracyte 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.
Volatility & Risk
Vermillion has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.
Veracyte beats Vermillion on 7 of the 11 factors compared between the two stocks.
Vermillion, Inc. is a diagnostic service and bio-analytic solutions provider. The Company is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease. It sells OVA1 risk of malignancy test for pelvic mass disease (OVA1). OVA1 is a blood test designed to, in addition to a physician’s clinical assessment of a woman with a pelvic mass, identify women who are at risk of having a malignant ovarian tumor prior to planned surgery. It developed OVA1 through pre-clinical studies in collaboration with various academic medical centers encompassing over 2,500 clinical samples. OVA1 is validated in a multi-center clinical trial encompassing approximately 30 sites reflective of the diverse nature of the clinical centers, at which ovarian adnexal masses are evaluated. Its ASPiRA LABS is a laboratory that provides diagnostic services using a biomarker-based diagnostic algorithm to inform clinical decision making and personalized treatment plans.
Veracyte, Inc. is a genomic diagnostics company. The Company uses genomic technology to resolve diagnostic ambiguity. It targets diseases in which patients undergo invasive diagnostic procedures. Its products combine genomic technology, clinical science and machine learning. The Company commercializes over three genomic tests, which are transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis. The Company’s commercial solution, the Afirma Thyroid fine needle aspiration (FNA) Analysis, centers on the Afirma Gene Expression Classifier (GEC). The Afirma GEC is offered directly or as part of a solution that also includes cytopathology. The Company operates in the pulmonology diagnostics market. It offers Percepta Bronchial Genomic Classifier, a genomic test to resolve ambiguity in lung cancer diagnosis. It also offers the Envisia Genomic Classifier, which is designed to help in the assessment of patients suspected to have idiopathic pulmonary fibrosis.
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