Fulgent Genetics (NASDAQ:FLGT – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings and price targets for Fulgent Genetics and Clover Health Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fulgent Genetics | 1 | 2 | 2 | 0 | 2.20 |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
Fulgent Genetics presently has a consensus target price of $27.00, indicating a potential upside of 47.46%. Clover Health Investments has a consensus target price of $3.23, indicating a potential downside of 17.52%. Given Fulgent Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Fulgent Genetics is more favorable than Clover Health Investments.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fulgent Genetics | $322.67 million | 1.61 | -$60.51 million | ($2.39) | -7.66 |
| Clover Health Investments | $1.92 billion | 1.07 | -$85.55 million | ($0.12) | -32.67 |
Fulgent Genetics has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Fulgent Genetics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
48.1% of Fulgent Genetics shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 36.2% of Fulgent Genetics shares are owned by company insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Fulgent Genetics and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fulgent Genetics | -23.04% | -3.24% | -2.97% |
| Clover Health Investments | -2.58% | -16.52% | -9.28% |
Risk & Volatility
Fulgent Genetics has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500.
Summary
Fulgent Genetics beats Clover Health Investments on 10 of the 14 factors compared between the two stocks.
About Fulgent Genetics
Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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