CareDx (NASDAQ:CDNA – Get Free Report) and Enhabit (NYSE:EHAB – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Profitability
This table compares CareDx and Enhabit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareDx | 17.97% | 18.03% | 12.88% |
| Enhabit | -1.14% | 3.91% | 1.82% |
Analyst Ratings
This is a summary of current recommendations for CareDx and Enhabit, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareDx | 0 | 5 | 4 | 0 | 2.44 |
| Enhabit | 1 | 1 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares CareDx and Enhabit”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareDx | $358.00 million | 2.56 | $52.55 million | $1.19 | 14.97 |
| Enhabit | $1.03 billion | 0.44 | -$156.20 million | ($0.25) | -36.12 |
CareDx has higher earnings, but lower revenue than Enhabit. Enhabit is trading at a lower price-to-earnings ratio than CareDx, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CareDx has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500. Comparatively, Enhabit has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
Summary
CareDx beats Enhabit on 11 of the 12 factors compared between the two stocks.
About CareDx
CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.
About Enhabit
Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was founded in 1998 and is based in Dallas, Texas.
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