Veracyte (NASDAQ:VCYT – Get Free Report) and Biodesix (NASDAQ:BDSX – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Earnings & Valuation
This table compares Veracyte and Biodesix’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veracyte | $296.54 million | 4.89 | -$36.56 million | ($0.40) | -49.87 |
| Biodesix | $41.64 million | 2.85 | -$65.45 million | ($1.10) | -1.37 |
Veracyte has higher revenue and earnings than Biodesix. Veracyte is trading at a lower price-to-earnings ratio than Biodesix, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | -8.84% | -2.71% | -2.53% |
| Biodesix | -158.72% | -1,628.23% | -79.00% |
Insider & Institutional Ownership
21.2% of Biodesix shares are owned by institutional investors. 2.6% of Veracyte shares are owned by company insiders. Comparatively, 63.8% of Biodesix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Veracyte and Biodesix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 1 | 6 | 0 | 2.63 |
| Biodesix | 0 | 0 | 1 | 0 | 3.00 |
Veracyte currently has a consensus price target of $31.29, suggesting a potential upside of 56.82%. Given Veracyte’s higher probable upside, analysts clearly believe Veracyte is more favorable than Biodesix.
Risk and Volatility
Veracyte has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Biodesix has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Summary
Veracyte beats Biodesix on 10 of the 14 factors compared between the two stocks.
About Veracyte
Veracyte, Inc. operates as a diagnostics company worldwide. The company offers Afirma Genomic Sequencing Classifier; Decipher Prostate Biopsy and Radical Prostatectomy for prostate cancer diagnosis; Prosigna Breast Cancer Assay for breast cancer diagnosis; Percepta Nasal Swab Test for lung cancer diagnosis; Envisia Genomic Classifier for diagnosing interstitial lung disease, including idiopathic pulmonary fibrosis; and Immunoscore Colon Cancer test for colon cancer diagnosis. It is also developing Percepta Genomic Atlas to help inform lung cancer treatment decisions; Envisia Classifier, the nCounter analysis system; and LymphMark for lymphoma subtyping test. Veracyte, Inc. has technology licensing and collaboration arrangements with Johnson & Johnson; Acerta Pharma; and CareDx. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.
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 provides 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 blood-based NGS. 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. and as changed to Biodesix, Inc. in 2006. Biodesix, Inc. was incorporated in 2005 and is headquartered in Boulder, Colorado.
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