Financial Review: Accelerate Diagnostics (AXDX) versus Illumina (ILMN)

Accelerate Diagnostics (NASDAQ: AXDX) and Illumina (NASDAQ:ILMN) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

45.0% of Accelerate Diagnostics shares are owned by institutional investors. Comparatively, 93.1% of Illumina shares are owned by institutional investors. 50.0% of Accelerate Diagnostics shares are owned by company insiders. Comparatively, 1.6% of Illumina shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Accelerate Diagnostics and Illumina’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Accelerate Diagnostics $250,000.00 4,155.00 -$66.37 million ($1.20) -15.62
Illumina $2.40 billion 12.72 $462.64 million $5.30 39.42

Illumina has higher revenue and earnings than Accelerate Diagnostics. Accelerate Diagnostics is trading at a lower price-to-earnings ratio than Illumina, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Accelerate Diagnostics has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Illumina has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Accelerate Diagnostics and Illumina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accelerate Diagnostics -3,085.36% -60.99% -57.85%
Illumina 21.29% 23.48% 12.31%

Analyst Ratings

This is a summary of current ratings and target prices for Accelerate Diagnostics and Illumina, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accelerate Diagnostics 0 0 2 0 3.00
Illumina 1 8 11 0 2.50

Accelerate Diagnostics currently has a consensus target price of $33.00, suggesting a potential upside of 76.00%. Illumina has a consensus target price of $199.28, suggesting a potential downside of 4.62%. Given Accelerate Diagnostics’ stronger consensus rating and higher probable upside, analysts clearly believe Accelerate Diagnostics is more favorable than Illumina.

Summary

Illumina beats Accelerate Diagnostics on 8 of the 13 factors compared between the two stocks.

Accelerate Diagnostics Company Profile

Accelerate Diagnostics, Inc. is an in vitro diagnostics company engaged in providing solutions that develop patient outcomes through the diagnosis of serious infections. The Company’s in vitro diagnostic platform, the Accelerate Pheno system utilizes genotypic technology to identify (ID), infectious pathogens and phenotypic technology to conduct antibiotic susceptibility testing (AST), which determines whether live bacterial or fungal cells are resistant or susceptible to a particular antibiotic. It detects and identifies pathogens directly from a single patient sample followed by antimicrobial susceptibility testing based on the identification results. The Accelerate PhenoTest BC Kit provides ID and AST results for patients suspected of bacteremia or fungemia, both life-threatening conditions with high morbidity and mortality risk. The Accelerate Pheno system features walk-away automation and consists of a fixed instrument and single-use test kit.

Illumina Company Profile

Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.

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