GenMark Diagnostics (NASDAQ: GNMK) and Quidel Corporation (NASDAQ:QDEL) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
This table compares GenMark Diagnostics and Quidel Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
GenMark Diagnostics has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Quidel Corporation has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
87.2% of Quidel Corporation shares are held by institutional investors. 7.5% of GenMark Diagnostics shares are held by insiders. Comparatively, 22.0% of Quidel Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for GenMark Diagnostics and Quidel Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GenMark Diagnostics presently has a consensus price target of $14.40, suggesting a potential upside of 47.84%. Quidel Corporation has a consensus price target of $47.50, suggesting a potential upside of 10.57%. Given GenMark Diagnostics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe GenMark Diagnostics is more favorable than Quidel Corporation.
Earnings & Valuation
This table compares GenMark Diagnostics and Quidel Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|GenMark Diagnostics||$50.59 million||10.52||-$49.93 million||($1.21)||-8.05|
|Quidel Corporation||$214.11 million||6.71||$39.38 million||($0.01)||-4,291.71|
Quidel Corporation has higher revenue and earnings than GenMark Diagnostics. Quidel Corporation is trading at a lower price-to-earnings ratio than GenMark Diagnostics, indicating that it is currently the more affordable of the two stocks.
Quidel Corporation beats GenMark Diagnostics on 9 of the 12 factors compared between the two stocks.
About GenMark Diagnostics
GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.
About Quidel Corporation
Quidel Corporation is engaged in the development, manufacturing and marketing of diagnostic testing solutions. These diagnostic testing solutions are separated into four product categories: immunoassays, molecular assays, virology and specialty products. The Company sells its products directly to end users and distributors, in each case, for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, universities, retail clinics, pharmacies and wellness screening centers. Its diagnostic solutions aid in the detection and diagnosis of critical diseases and other medical conditions, including infectious diseases, women’s health, gastrointestinal diseases, autoimmune diseases, bone health and thyroid diseases. The Company provides diagnostic testing solutions under various brand names, including Quidel, QuickVue, QuickVue+, MicroVue, FreshCells, D3 FastPoint, Super E-Mix, ELVIS, Sofia, Quidel Molecular, Amplivue, Lyra and Thyretain.
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