Myriad Genetics (NASDAQ: MYGN) and Sequenom (NASDAQ:SQNM) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Volatility and Risk

Myriad Genetics has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Sequenom has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Profitability

This table compares Myriad Genetics and Sequenom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Myriad Genetics 2.83% 9.67% 5.75%
Sequenom -21.54% N/A -25.05%

Insider and Institutional Ownership

46.0% of Sequenom shares are held by institutional investors. 6.2% of Myriad Genetics shares are held by company insiders. Comparatively, 3.1% of Sequenom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Myriad Genetics and Sequenom’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Myriad Genetics $771.40 million 2.89 $97.70 million $0.32 101.78
Sequenom N/A N/A N/A ($0.34) -7.03

Myriad Genetics has higher revenue and earnings than Sequenom. Sequenom is trading at a lower price-to-earnings ratio than Myriad Genetics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Myriad Genetics and Sequenom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Myriad Genetics 2 6 1 0 1.89
Sequenom 0 0 0 0 N/A

Myriad Genetics currently has a consensus price target of $20.38, suggesting a potential downside of 37.44%. Given Myriad Genetics’ higher possible upside, research analysts clearly believe Myriad Genetics is more favorable than Sequenom.

Summary

Myriad Genetics beats Sequenom on 8 of the 10 factors compared between the two stocks.

About Myriad Genetics

Myriad Genetics, Inc. is a molecular diagnostic company. The Company is engaged in the discovery, development and marketing of transformative molecular diagnostic tests. The Company operates through two segments: diagnostics and other. The diagnostics segment provides testing and collaborative development of testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to enable optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The other segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients, and also includes corporate services, such as finance, human resources, legal and information technology. Its molecular diagnostic tests include myRisk Hereditary Cancer, BRACAnalysis CDx and COLARIS.

About Sequenom

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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