GenMark Diagnostics (NASDAQ: GNMK) and Abaxis (NASDAQ:ABAX) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Volatility & Risk
GenMark Diagnostics has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Abaxis has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. GenMark Diagnostics does not pay a dividend. Abaxis pays out 53.3% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for GenMark Diagnostics and Abaxis, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GenMark Diagnostics presently has a consensus price target of $11.80, suggesting a potential upside of 149.47%. Abaxis has a consensus price target of $47.63, suggesting a potential downside of 23.53%. Given GenMark Diagnostics’ stronger consensus rating and higher possible upside, analysts clearly believe GenMark Diagnostics is more favorable than Abaxis.
Valuation and Earnings
This table compares GenMark Diagnostics and Abaxis’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GenMark Diagnostics||$49.27 million||5.26||-$50.60 million||($1.23)||-3.85|
|Abaxis||$227.22 million||6.22||$32.71 million||$1.20||51.90|
Abaxis has higher revenue and earnings than GenMark Diagnostics. GenMark Diagnostics is trading at a lower price-to-earnings ratio than Abaxis, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
97.7% of Abaxis shares are held by institutional investors. 7.5% of GenMark Diagnostics shares are held by company insiders. Comparatively, 4.3% of Abaxis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares GenMark Diagnostics and Abaxis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Abaxis beats GenMark Diagnostics on 11 of the 16 factors compared between the two stocks.
GenMark Diagnostics Company Profile
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.
Abaxis Company Profile
Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.
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