Castlight Health (NYSE: CSLT) and Fluidigm (NASDAQ:FLDM) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Castlight Health and Fluidigm’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castlight Health $101.70 million 5.00 -$58.54 million ($0.48) -7.92
Fluidigm $104.45 million 2.02 -$75.98 million ($2.24) -2.44

Castlight Health has higher earnings, but lower revenue than Fluidigm. Castlight Health is trading at a lower price-to-earnings ratio than Fluidigm, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Castlight Health has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Fluidigm has a beta of 3.37, suggesting that its stock price is 237% more volatile than the S&P 500.

Profitability

This table compares Castlight Health and Fluidigm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health -45.14% -32.57% -22.14%
Fluidigm -68.27% -134.35% -17.77%

Institutional & Insider Ownership

42.6% of Castlight Health shares are held by institutional investors. Comparatively, 93.3% of Fluidigm shares are held by institutional investors. 24.4% of Castlight Health shares are held by insiders. Comparatively, 4.7% of Fluidigm shares are held 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.

Analyst Recommendations

This is a summary of current ratings for Castlight Health and Fluidigm, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health 1 3 3 0 2.29
Fluidigm 0 0 1 0 3.00

Castlight Health currently has a consensus target price of $5.34, suggesting a potential upside of 40.57%. Fluidigm has a consensus target price of $9.00, suggesting a potential upside of 64.84%. Given Fluidigm’s stronger consensus rating and higher possible upside, analysts plainly believe Fluidigm is more favorable than Castlight Health.

Summary

Castlight Health beats Fluidigm on 7 of the 13 factors compared between the two stocks.

Castlight Health Company Profile

Castlight is on a mission to make it as easy as humanly possible to navigate healthcare and live happier, healthier, more productive lives. Our health navigation platform connects with hundreds of health vendors, benefits resources, and plan designs, giving rise to the world’s first comprehensive app for all health needs. We guide individuals—based on their unique profile—to the best resources available to them, whether they are healthy, chronically ill, or actively seeking medical care. In doing so, we help companies regain control over rising healthcare costs and get more value from their benefits investments. Castlight revolutionized the healthcare sector with the introduction of data-driven price transparency tools in 2008 and the first consumer-grade wellbeing platform in 2012. Today, Castlight serves as the health navigation platform for millions of people and is a trusted partner to many of the largest employers in the world.

Fluidigm Company Profile

Fluidigm Corporation creates, manufactures and markets technologies and life science tools focused on the exploration and analysis of single cells, as well as the industrial application of genomics, based upon the Company’s core microfluidics and mass cytometry technologies. The Company operates in the development, manufacturing and commercialization of life science tools for the life science and Ag-Bio industries segment. Its products include preparatory instruments, preparatory analytical instruments, analytical instruments, integrated fluidic circuits (IFCs), and assays and reagents. Its preparatory instruments include C1 Single-Cell Auto Prep System, Access Array System, Juno System and IFCs, and Callisto System and IFC. Its analytical instruments include Biomark HD System, EP1 System and Helios/CyTOF 2 System. Its assays and reagents include Delta Gene and SNP Type Assays, and Access Array Target-Specific Primers and Targeted Sequencing Prep Primers.

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