Select Medical (NYSE: SEM) and Cancer Genetics (NASDAQ:CGIX) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

77.9% of Select Medical shares are held by institutional investors. Comparatively, 11.1% of Cancer Genetics shares are held by institutional investors. 19.9% of Select Medical shares are held by insiders. Comparatively, 21.3% of Cancer Genetics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Select Medical and Cancer Genetics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Select Medical $4.29 billion 0.55 $115.41 million $0.72 24.31
Cancer Genetics $27.05 million 2.15 -$15.80 million ($0.82) -2.56

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

Profitability

This table compares Select Medical and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Medical 2.21% 11.44% 2.03%
Cancer Genetics -54.65% -46.21% -24.62%

Analyst Ratings

This is a summary of recent ratings for Select Medical and Cancer Genetics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Medical 1 2 4 0 2.43
Cancer Genetics 0 1 3 0 2.75

Select Medical currently has a consensus price target of $19.50, indicating a potential upside of 11.43%. Cancer Genetics has a consensus price target of $6.00, indicating a potential upside of 185.71%. Given Cancer Genetics’ stronger consensus rating and higher possible upside, analysts clearly believe Cancer Genetics is more favorable than Select Medical.

Risk & Volatility

Select Medical has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

Select Medical beats Cancer Genetics on 10 of the 14 factors compared between the two stocks.

About Select Medical

Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. The Company’s segments include specialty hospitals, outpatient rehabilitation, Concentra and Other. The specialty hospitals segment consists of hospitals designed to serve the needs of long term acute patients and hospitals designed to serve patients that require intensive medical rehabilitation care. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. The Concentra segment consists of medical centers and contract services provided at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, physical therapy, veteran’s healthcare, and consumer health services. As of December 31, 2016, the Company had operations in 46 states and the District of Columbia.

About Cancer Genetics

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

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