CareDx (NASDAQ: CDNA) and Vermillion (NASDAQ:VRML) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

35.6% of CareDx shares are owned by institutional investors. Comparatively, 35.7% of Vermillion shares are owned by institutional investors. 5.4% of CareDx shares are owned by insiders. Comparatively, 3.7% of Vermillion shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares CareDx and Vermillion’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CareDx $46.96 million 0.83 -$9.83 million ($1.44) -1.26
Vermillion $3.05 million 21.38 -$10.50 million N/A N/A

CareDx has higher revenue and earnings than Vermillion.

Profitability

This table compares CareDx and Vermillion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareDx -61.27% -85.68% -21.21%
Vermillion -370.69% -215.53% -121.92%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CareDx and Vermillion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareDx 0 0 0 0 N/A
Vermillion 0 0 1 0 3.00

Vermillion has a consensus target price of $2.00, indicating a potential upside of 72.25%. Given Vermillion’s higher probable upside, analysts clearly believe Vermillion is more favorable than CareDx.

Volatility & Risk

CareDx has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Vermillion has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500.

Summary

CareDx beats Vermillion on 6 of the 11 factors compared between the two stocks.

CareDx Company Profile

CareDx, Inc. is a molecular diagnostics company. The Company is focused on the discovery, development and commercialization of clinically differentiated diagnostic surveillance solutions for transplant patients. The Company’s commercialized testing solution, the AlloMap heart transplant molecular test (AlloMap), is a gene expression test that helps clinicians monitor and identify heart transplant recipients with stable graft function having a low probability of moderate/severe acute cellular rejection. Its products under development for transplant monitoring include AlloSure, a development-stage transplant surveillance solution, which applies next generation sequencing to detect and quantitate genetic differences between donor-derived cell-free deoxyribonucleic acid (dd-cfDNA) in the blood stream emanating from the donor heart. It offers the AlloMap Score Variability service, which provides complementary information to help personalize long-term care of heart transplant recipients.

Vermillion Company Profile

Vermillion, Inc. is a diagnostic service and bio-analytic solutions provider. The Company is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease. It sells OVA1 risk of malignancy test for pelvic mass disease (OVA1). OVA1 is a blood test designed to, in addition to a physician’s clinical assessment of a woman with a pelvic mass, identify women who are at risk of having a malignant ovarian tumor prior to planned surgery. It developed OVA1 through pre-clinical studies in collaboration with various academic medical centers encompassing over 2,500 clinical samples. OVA1 is validated in a multi-center clinical trial encompassing approximately 30 sites reflective of the diverse nature of the clinical centers, at which ovarian adnexal masses are evaluated. Its ASPiRA LABS is a laboratory that provides diagnostic services using a biomarker-based diagnostic algorithm to inform clinical decision making and personalized treatment plans.

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