Invitae (NYSE:NVTA – Get Rating) and Biodesix (NASDAQ:BDSX – Get Rating) 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, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Institutional & Insider Ownership
76.8% of Invitae shares are held by institutional investors. 1.1% of Invitae shares are held by insiders. Comparatively, 49.8% of Biodesix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Invitae and Biodesix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Invitae | 4 | 7 | 0 | 0 | 1.64 |
| Biodesix | 0 | 0 | 4 | 0 | 3.00 |
Profitability
This table compares Invitae and Biodesix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Invitae | -601.64% | -59.44% | -18.80% |
| Biodesix | -171.27% | -741.60% | -83.92% |
Risk & Volatility
Invitae has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Biodesix has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Earnings and Valuation
This table compares Invitae and Biodesix’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Invitae | $516.30 million | 0.63 | -$3.11 billion | ($13.35) | -0.10 |
| Biodesix | $38.21 million | 3.51 | -$65.45 million | ($1.59) | -1.08 |
Biodesix has lower revenue, but higher earnings than Invitae. Biodesix is trading at a lower price-to-earnings ratio than Invitae, indicating that it is currently the more affordable of the two stocks.
Summary
Biodesix beats Invitae on 8 of the 14 factors compared between the two stocks.
About Invitae
Invitae Corp. engages in the provision of genetic information into mainstream medical practice. It includes comprehensive panels for hereditary conditions in cancer, cardiology, neurology, pediatric, and rare diseases. The company was founded by Randal W. Scott and Sean E. George on January 13, 2010 and is headquartered in San Francisco, CA.
About Biodesix
Biodesix, Inc. operates as a data-driven diagnostic solutions company in the United States. The company offers blood-based lung tests, including Nodify XL2 and Nodify CDT tests, together marketed as part of Nodify Lung Nodule Risk Assessment testing strategy, to assess the risk of lung cancer and help in identifying the appropriate treatment pathway and help physicians in reclassifying risk of malignancy in patients with suspicious lung nodules. It also offers GeneStrat ddPCR and VeriStrat tests, which are used in the diagnosis of lung cancer to measure the presence of mutations in the tumor and the state of the patient's immune system to establish the patient's prognosis and help guide treatment decisions; and GeneStrat NGS (NGS) test, a 72-hour blood-based NGS test. In addition, the company, through its partnership with Bio-Rad Laboratories, Inc., provides Bio-Rad SARS-CoV-2 ddPCR, a COVID-19 Test under Biodesix WorkSafe testing program; and Platelia SARS-CoV-2 Total Ab test, an antibody test for detecting a B-cell immune response to SARS-CoV-2 that indicate recent or prior infection. Further, it offers diagnostic and clinical research, as well as clinical trial testing services to biopharmaceutical companies; and discovers, develops, and commercializes companion diagnostics. The company was formerly known as Elston Technologies, Inc. Biodesix, Inc. was incorporated in 2005 and is headquartered in Boulder, Colorado.
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