BioTelemetry (NASDAQ: BEAT) and Signal Genetics (NASDAQ:MGEN) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares BioTelemetry and Signal Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioTelemetry 21.03% 18.75% 12.70%
Signal Genetics -555.68% -109.13% -81.59%

Risk and Volatility

BioTelemetry has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Signal Genetics has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

83.9% of BioTelemetry shares are owned by institutional investors. Comparatively, 16.4% of Signal Genetics shares are owned by institutional investors. 9.6% of BioTelemetry shares are owned by company insiders. Comparatively, 44.4% of Signal Genetics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BioTelemetry and Signal Genetics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioTelemetry 0 0 5 0 3.00
Signal Genetics 0 0 4 0 3.00

BioTelemetry presently has a consensus price target of $45.75, suggesting a potential upside of 32.61%. Signal Genetics has a consensus price target of $15.67, suggesting a potential upside of 35.52%. Given Signal Genetics’ higher probable upside, analysts clearly believe Signal Genetics is more favorable than BioTelemetry.

Valuation & Earnings

This table compares BioTelemetry and Signal Genetics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BioTelemetry $211.19 million 4.68 $41.34 million $1.50 23.00
Signal Genetics $3.02 million 81.92 -$20.05 million N/A N/A

BioTelemetry has higher revenue and earnings than Signal Genetics.

Summary

BioTelemetry beats Signal Genetics on 7 of the 11 factors compared between the two stocks.

BioTelemetry Company Profile

BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).

Signal Genetics Company Profile

Signal Genetics, Inc. is a commercial stage, molecular genetic diagnostic company. The Company is focused on providing diagnostic services that help physicians to make decisions concerning the care of cancer patients. The Company’s diagnostic service is the Myeloma Prognostic Risk Signature (MyPRS) test. The MyPRS test is a microarray-based gene expression profile (GEP), assay that measures the expression level of specific genes and groups of genes that are designed to predict an individual’s long-term clinical outcome/prognosis, giving a basis for personalized treatment options. The Company’s MyPRS test provides a whole-genomic expression profile of a patient’s multiple myeloma (MM). The Company offers MyPRS test in its laboratory located in Little Rock, Arkansas. The Company is licensed to sell its test in all 50 states.

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