Veracyte (NASDAQ: VCYT) and Digiliti Money (NASDAQ:DGLT) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Earnings & Valuation

This table compares Veracyte and Digiliti Money’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Veracyte $71.70 million 3.85 -$20.10 million ($0.80) -10.18
Digiliti Money $9.03 million 1.14 -$6.89 million N/A N/A

Digiliti Money has higher revenue, but lower earnings than Veracyte.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Veracyte and Digiliti Money, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veracyte 0 0 5 0 3.00
Digiliti Money 0 0 1 0 3.00

Veracyte currently has a consensus target price of $13.00, indicating a potential upside of 59.71%. Digiliti Money has a consensus target price of $6.00, indicating a potential upside of 473.39%. Given Digiliti Money’s higher possible upside, analysts clearly believe Digiliti Money is more favorable than Veracyte.

Insider and Institutional Ownership

63.6% of Veracyte shares are owned by institutional investors. Comparatively, 4.8% of Digiliti Money shares are owned by institutional investors. 13.4% of Veracyte shares are owned by insiders. Comparatively, 50.9% of Digiliti Money shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Veracyte and Digiliti Money’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veracyte -35.64% -53.58% -29.07%
Digiliti Money -147.73% N/A -199.21%

Summary

Veracyte beats Digiliti Money on 6 of the 10 factors compared between the two stocks.

About Veracyte

Veracyte, Inc. is a genomic diagnostics company. The Company uses genomic technology to resolve diagnostic ambiguity. It targets diseases in which patients undergo invasive diagnostic procedures. Its products combine genomic technology, clinical science and machine learning. The Company commercializes over three genomic tests, which are transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis. The Company’s commercial solution, the Afirma Thyroid fine needle aspiration (FNA) Analysis, centers on the Afirma Gene Expression Classifier (GEC). The Afirma GEC is offered directly or as part of a solution that also includes cytopathology. The Company operates in the pulmonology diagnostics market. It offers Percepta Bronchial Genomic Classifier, a genomic test to resolve ambiguity in lung cancer diagnosis. It also offers the Envisia Genomic Classifier, which is designed to help in the assessment of patients suspected to have idiopathic pulmonary fibrosis.

About Digiliti Money

Digiliti Money Group, Inc., formerly Digiliti Money, Inc., is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders.

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