Financial Analysis: Signal Genetics (MGEN) vs. BG Medicine (BGMD)
BG Medicine (OTCMKTS: BGMD) and Signal Genetics (NASDAQ:MGEN) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
22.6% of Signal Genetics shares are held by institutional investors. 6.5% of BG Medicine shares are held by insiders. Comparatively, 44.4% of Signal Genetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations for BG Medicine and Signal Genetics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Signal Genetics has a consensus target price of $24.00, indicating a potential upside of 199.63%. Given Signal Genetics’ higher possible upside, analysts plainly believe Signal Genetics is more favorable than BG Medicine.
Valuation and Earnings
This table compares BG Medicine and Signal Genetics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BG Medicine||$1.57 million||0.33||-$5.30 million||N/A||N/A|
|Signal Genetics||$3.34 million||53.50||-$12.67 million||($8.93)||-0.90|
BG Medicine has higher earnings, but lower revenue than Signal Genetics.
This table compares BG Medicine and Signal Genetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
BG Medicine has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Signal Genetics has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.
Signal Genetics beats BG Medicine on 7 of the 11 factors compared between the two stocks.
BG Medicine Company Profile
BG Medicine, Inc. (BG Medicine) is a commercial-stage diagnostics company. The Company is engaged in commercializing diagnostic products that may be used to help guide the care and management of patients suffering from heart failure and related disorders. The Company’s BGM Galectin-3 Test is an in vitro diagnostic device that employs a manual micro-titer platform to measure galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of chronic heart failure in conjunction with clinical evaluation. The automated galectin-3 tests are being developed and commercialized by its diagnostic instrument manufacturing partners and will be performed on its partners’ automated platforms. The Company’s CardioSCORE test is a multi-analyte biomarker-based blood test that was designed as an aid in the assessment of near-term risk for atherothrombotic cardiovascular events, such as heart attack and ischemic stroke.
Signal Genetics Company Profile
Signal Genetics, Inc. is a commercial stage, molecular genetic diagnostic company. The Company is focused on providing diagnostic services that help physicians to make decisions concerning the care of cancer patients. The Company’s diagnostic service is the Myeloma Prognostic Risk Signature (MyPRS) test. The MyPRS test is a microarray-based gene expression profile (GEP), assay that measures the expression level of specific genes and groups of genes that are designed to predict an individual’s long-term clinical outcome/prognosis, giving a basis for personalized treatment options. The Company’s MyPRS test provides a whole-genomic expression profile of a patient’s multiple myeloma (MM). The Company offers MyPRS test in its laboratory located in Little Rock, Arkansas. The Company is licensed to sell its test in all 50 states.
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