Interpace Diagnostics Group (NASDAQ: IDXG) and Ritchie Bros. Auctioneers (NYSE:RBA) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Institutional and Insider Ownership

6.0% of Interpace Diagnostics Group shares are held by institutional investors. Comparatively, 96.9% of Ritchie Bros. Auctioneers shares are held by institutional investors. 0.7% of Interpace Diagnostics Group shares are held by insiders. Comparatively, 0.4% of Ritchie Bros. Auctioneers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Interpace Diagnostics Group has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Dividends

Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. Interpace Diagnostics Group does not pay a dividend. Ritchie Bros. Auctioneers pays out 111.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ritchie Bros. Auctioneers has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Interpace Diagnostics Group and Ritchie Bros. Auctioneers, 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
Ritchie Bros. Auctioneers 2 5 5 0 2.25

Interpace Diagnostics Group currently has a consensus price target of $5.00, suggesting a potential upside of 323.73%. Ritchie Bros. Auctioneers has a consensus price target of $29.45, suggesting a potential upside of 15.17%. Given Interpace Diagnostics Group’s stronger consensus rating and higher possible upside, analysts plainly believe Interpace Diagnostics Group is more favorable than Ritchie Bros. Auctioneers.

Valuation & Earnings

This table compares Interpace Diagnostics Group and Ritchie Bros. Auctioneers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $13.09 million 2.42 -$8.33 million $3.02 0.39
Ritchie Bros. Auctioneers $566.40 million 4.84 $91.83 million $0.61 41.92

Ritchie Bros. Auctioneers has higher revenue and earnings than Interpace Diagnostics Group. Interpace Diagnostics Group is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Interpace Diagnostics Group and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -6.33% -5.69% -3.06%
Ritchie Bros. Auctioneers 11.43% 13.04% 4.87%

Summary

Ritchie Bros. Auctioneers beats Interpace Diagnostics Group on 11 of the 17 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.

Ritchie Bros. Auctioneers Company Profile

Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.

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