HTG Molecular Diagnostics (NASDAQ: HTGM) and Sequenom (NASDAQ:SQNM) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitabiliy and valuation.

Volatility & Risk

HTG Molecular Diagnostics has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Sequenom has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Institutional and Insider Ownership

31.3% of HTG Molecular Diagnostics shares are held by institutional investors. Comparatively, 46.0% of Sequenom shares are held by institutional investors. 8.1% of HTG Molecular Diagnostics shares are held by insiders. Comparatively, 3.1% of Sequenom shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HTG Molecular Diagnostics and Sequenom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HTG Molecular Diagnostics $5.64 million 4.63 -$21.68 million ($3.39) -0.81
Sequenom N/A N/A N/A ($0.34) -7.03

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

Profitability

This table compares HTG Molecular Diagnostics and Sequenom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HTG Molecular Diagnostics -440.31% -1,538.49% -117.27%
Sequenom -21.54% N/A -25.05%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HTG Molecular Diagnostics and Sequenom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HTG Molecular Diagnostics 0 1 2 0 2.67
Sequenom 0 2 0 0 2.00

HTG Molecular Diagnostics presently has a consensus target price of $5.83, suggesting a potential upside of 112.90%. Sequenom has a consensus target price of $0.75, suggesting a potential downside of 68.62%. Given HTG Molecular Diagnostics’ stronger consensus rating and higher probable upside, equities analysts clearly believe HTG Molecular Diagnostics is more favorable than Sequenom.

Summary

Sequenom beats HTG Molecular Diagnostics on 6 of the 11 factors compared between the two stocks.

HTG Molecular Diagnostics Company Profile

HTG Molecular Diagnostics, Inc. is a commercial-stage company that develops and markets a technology platform to facilitate the routine use of complex molecular profiling. The Company’s HTG Edge and HTG EdgeSeq platforms, consisting of instrumentation, consumables and software analytics, are used in sample profiling applications, including tumor profiling, molecular diagnostic testing and biomarker development. The Company’s HTG Edge and HTG EdgeSeq platforms automate the molecular profiling of genes and gene activity using its nuclease protection chemistry on a range of biological samples. The Company’s HTG EdgeSeq chemistry, together with its HTG Edge or HTG EdgeSeq instrumentation and software, automates and adapts its nuclease protection chemistry to enable analysis using next generation sequencing (NGS) instrumentation. The HTG EdgeSeq system utilizes substantially the same sample preparation reagents as its original chemistry, but allows for read out on an NGS instrument.

Sequenom Company Profile

Sequenom, Inc. is a life sciences company. The Company serves patients and physicians by providing early patient management information. The Company operates through Sequenom Laboratories segment. It conducts its business as a molecular diagnostics clinical laboratory located in San Diego, California and Raleigh-Durham, North Carolina. Its testing focus is on prenatal health that includes molecular-based laboratory developed tests (LDTs). The Company’s diagnostic services are provided through its subsidiary, Sequenom Center for Molecular Medicine LLC (SCMM), doing business as Sequenom Laboratories. Sequenom Laboratories develops and validates its tests to be used as a testing service to physicians. Sequenom Laboratories is focused on developing and offering a menu of tests for prenatal continuum of care. The Sequenom Laboratories’ test offerings in the prenatal market include MaterniT21 PLUS LDT, HerediT CF test, SensiGene RhD test, VisibiliT test and Test Send-out Agreements.

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