Interpace Diagnostics Group (NASDAQ: IDXG) and H&E Equipment Services (NASDAQ:HEES) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

7.6% of Interpace Diagnostics Group shares are held by institutional investors. Comparatively, 75.1% of H&E Equipment Services shares are held by institutional investors. 0.7% of Interpace Diagnostics Group shares are held by company insiders. Comparatively, 12.0% of H&E Equipment Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

H&E Equipment Services pays an annual dividend of $1.10 per share and has a dividend yield of 4.2%. Interpace Diagnostics Group does not pay a dividend. H&E Equipment Services pays out 99.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Interpace Diagnostics Group and H&E Equipment Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 1 0 3.00
H&E Equipment Services 0 0 1 0 3.00

Interpace Diagnostics Group presently has a consensus price target of $5.00, indicating a potential upside of 262.32%. H&E Equipment Services has a consensus price target of $30.00, indicating a potential upside of 15.79%. Given Interpace Diagnostics Group’s higher possible upside, analysts clearly believe Interpace Diagnostics Group is more favorable than H&E Equipment Services.

Valuation and Earnings

This table compares Interpace Diagnostics Group and H&E Equipment Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $13.76 million 2.22 -$10.89 million ($0.96) -1.44
H&E Equipment Services $965.22 million 0.94 $137.07 million $1.11 23.34

H&E Equipment Services has higher revenue and earnings than Interpace Diagnostics Group. Interpace Diagnostics Group is trading at a lower price-to-earnings ratio than H&E Equipment Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Interpace Diagnostics Group and H&E Equipment Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -37.08% -32.06% -11.22%
H&E Equipment Services 4.08% 27.93% 3.09%

Risk & Volatility

Interpace Diagnostics Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, H&E Equipment Services has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Summary

H&E Equipment Services beats Interpace Diagnostics Group on 10 of the 13 factors compared between the two stocks.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc., formerly PDI, Inc., is focused on developing and commercializing molecular diagnostic tests principally focused on early detection of high potential progressors to cancer and leveraging the latest technology and personalized medicine for patient diagnosis and management. The Company operates through molecular diagnostics segment. It offers molecular tests, such as PancraGen, which is a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment utilizing its PathFinder platform; ThyGenX, which assesses thyroid nodules for risk of malignancy, and ThyraMIR, which assesses thyroid nodules risk of malignancy utilizing a gene expression assay. Through its molecular diagnostics business, the Company provides diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers, which are focused on early detection of cancer.

H&E Equipment Services Company Profile

H&E Equipment Services, Inc. is an integrated equipment services company. The Company is focused on heavy construction and industrial equipment. As of December 31, 2016, the Company rented, sold and provided parts and services support for four core categories of specialized equipment: hi-lift or aerial work platform equipment; cranes; earthmoving equipment, and industrial lift trucks. The Company’s principal business activities include equipment rentals; new equipment sales; used equipment sales; parts sales, and repair and maintenance services. As of February 16, 2017, the Company had 78 facilities located throughout the West Coast, Intermountain, Southwest, Gulf Coast, Southeast and Mid-Atlantic regions of the United States. The Company rents its heavy construction and industrial equipment to its customers on a daily, weekly and monthly basis. The Company sells new heavy construction and industrial equipment. The Company is a distributor of Grove and Manitowoc crane equipment.

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