CareDx (NASDAQ:CDNA – Get Free Report) and MedTech Acquisition (NASDAQ:MTAC – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
21.0% of MedTech Acquisition shares are owned by institutional investors. 4.2% of CareDx shares are owned by company insiders. Comparatively, 76.2% of MedTech Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
CareDx has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, MedTech Acquisition has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareDx | $321.79 million | 1.87 | -$76.61 million | ($1.51) | -7.39 |
| MedTech Acquisition | N/A | N/A | $5.54 million | N/A | N/A |
MedTech Acquisition has lower revenue, but higher earnings than CareDx.
Analyst Ratings
This is a summary of recent ratings for CareDx and MedTech Acquisition, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareDx | 0 | 4 | 1 | 0 | 2.20 |
| MedTech Acquisition | 0 | 0 | 0 | 0 | N/A |
CareDx currently has a consensus target price of $16.00, suggesting a potential upside of 43.37%. Given CareDx’s higher possible upside, analysts plainly believe CareDx is more favorable than MedTech Acquisition.
Profitability
This table compares CareDx and MedTech Acquisition’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareDx | -25.25% | -18.65% | -14.97% |
| MedTech Acquisition | N/A | -17.92% | 1.66% |
Summary
MedTech Acquisition beats CareDx on 6 of the 10 factors compared between the two stocks.
About CareDx
CareDx, Inc. discovers, develops, and commercializes diagnostic solutions for transplant patients and caregivers. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; and XynQAPI transplant quality tracking and waitlist management solutions, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.
About MedTech Acquisition
MedTech Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the healthcare sector in the United States. The company was incorporated in 2020 and is based in Greenwich, Connecticut. MedTech Acquisition Corporation operates as a subsidiary of Medtech Acquisition Sponsor LLC.
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