Head to Head Comparison: InVitae (NVTA) and Vermillion (VRML)

InVitae (NYSE: NVTA) and Vermillion (NASDAQ:VRML) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Earnings and Valuation

This table compares InVitae and Vermillion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InVitae $25.05 million 16.02 -$100.25 million ($2.55) -2.97
Vermillion $2.64 million 37.50 -$14.96 million ($0.20) -8.25

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for InVitae and Vermillion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InVitae 0 0 4 0 3.00
Vermillion 0 0 1 0 3.00

InVitae presently has a consensus price target of $14.50, suggesting a potential upside of 91.29%. Vermillion has a consensus price target of $2.25, suggesting a potential upside of 36.36%. Given InVitae’s higher possible upside, analysts clearly believe InVitae is more favorable than Vermillion.

Profitability

This table compares InVitae and Vermillion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InVitae -206.95% -115.25% -67.79%
Vermillion -332.10% -200.44% -114.50%

Insider & Institutional Ownership

64.7% of InVitae shares are held by institutional investors. Comparatively, 34.9% of Vermillion shares are held by institutional investors. 9.9% of InVitae shares are held by insiders. Comparatively, 3.7% of Vermillion shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

InVitae beats Vermillion on 8 of the 11 factors compared between the two stocks.

About InVitae

Invitae Corporation utilizes an integrated portfolio of laboratory processes, software tools and informatics capabilities to process deoxyribonucleic acid (DNA)-containing samples, analyze information about patient-specific genetic variation and generate test reports for clinicians and their patients. As of December 31, 2016, the Company’s products consisted of assays totaling over 1,100 genes that could be used for multiple indications, including hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders and other hereditary conditions. The Company offers panels for a range of hereditary conditions in cancer, cardiology, neuromuscular, pediatric and rare diseases. The Company focuses on genetic testing, genome network and genome management. The Company offers full gene sequencing and deletion/duplication analysis as a standard for all of its tests. The Company holds interests in AltaVoice, a patient-centered data company.

About Vermillion

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.

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