Illumina (NASDAQ:ILMN) and Arrayit (OTCMKTS:ARYC) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Insider and Institutional Ownership
88.9% of Illumina shares are owned by institutional investors. 0.5% of Illumina shares are owned by company insiders. Comparatively, 58.0% of Arrayit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Illumina and Arrayit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Illumina has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Arrayit has a beta of -0.41, indicating that its stock price is 141% less volatile than the S&P 500.
Earnings & Valuation
This table compares Illumina and Arrayit’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Illumina||$2.75 billion||17.17||$726.00 million||$4.00||80.35|
Illumina has higher revenue and earnings than Arrayit.
This is a summary of current ratings and target prices for Illumina and Arrayit, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Illumina currently has a consensus target price of $329.44, suggesting a potential upside of 2.50%. Given Illumina’s higher probable upside, research analysts plainly believe Illumina is more favorable than Arrayit.
Illumina beats Arrayit on 8 of the 9 factors compared between the two stocks.
Illumina, Inc. provides sequencing and array-based solutions for genetic analysis. The company operates in two segments, Core Illumina and Consolidated VIEs. It offers sequencing by synthesis technology that provides researchers with various applications and the ability to sequence mammalian genomes; and arrays for a range of deoxyribonucleic acid and RNA analysis applications, including single nucleotide polymorphism genotyping, copy number variations analysis, gene expression analysis, and methylation analysis, as well as allow the detection of known genetic markers on a single array. The company also provides various library preparation and sequencing kits to simplify workflows and accelerate analysis; and genome sequencing, genotyping, and noninvasive prenatal testing, as well as products support services. It serves genomic research centers, academic institutions, government laboratories, and hospitals; and pharmaceutical, biotechnology, agrigenomics, and commercial molecular diagnostic laboratories, as well as consumer genomics companies. The company markets and distributes its products directly to customers, as well as through life-science distributors. It operates in North America, Europe, Latin America, the Asia-Pacific region, the Middle East, and South Africa. The company has a strategic partnership with Loxo Oncology, Inc. to develop and commercialize a multi-gene panel for broad tumor profiling; and strategic collaboration with Bristol-Myers Squibb Company. Illumina, Inc. was founded in 1998 and is headquartered in San Diego, California.
Arrayit Corporation, a life sciences technology company, develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation, biological function, and diagnostics worldwide. The company is involved in the development and support of microarray tools and components; custom printing and analysis of microarrays for research; and the identification and development of diagnostic microarrays and tools for early detection of treatable disease states. It offers microarray printing technology, which allows the manufacture of DNA, protein, antibody, lipid, carbohydrate, and other types of microarrays for research and diagnostic applications, including gene expression, genotyping, protein profiling, and others. The company also provides automated microarray manufacturing instruments, including NanoPrint, SpotBot Titan, SpotBot Extreme, SpotBo Protein, and Personal microarrayers, as well as SpotLight CCD fluorescence scanners, SpotWare colorimetric scanners, InnoScan laser scanners, TrayMix hybridization stations, ArrayMix hybridization stations, centrifuges, air jets, vacuum products, and laboratory tools and bioinformatics computers. In addition, it manufactures consumables, such as glass substrates and slides, reagents, solutions, kits, and clean room supplies; and provides variation identification platform technology that allows diagnostic tests to be performed by depositing approximately 100,000 patient samples onto a single microarray. Further, the company is involved in the import, export, manufacture, and distribution of wholesale industrial chemicals. Arrayit Corporation offers its tools and services to genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, government agencies, and biotechnology companies. The company is headquartered in Sunnyvale, California.
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