Fulgent Genetic (NASDAQ: FLGT) and Quidel Corporation (NASDAQ:QDEL) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

This table compares Fulgent Genetic and Quidel Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fulgent Genetic $20.81 million 3.96 $2.17 million ($0.38) -12.21
Quidel Corporation $214.11 million 6.80 $39.38 million ($0.01) -4,349.65

Quidel Corporation has higher revenue and earnings than Fulgent Genetic. Quidel Corporation is trading at a lower price-to-earnings ratio than Fulgent Genetic, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

16.8% of Fulgent Genetic shares are held by institutional investors. Comparatively, 87.2% of Quidel Corporation shares are held by institutional investors. 22.0% of Quidel Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Fulgent Genetic and Quidel Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fulgent Genetic 0 0 3 0 3.00
Quidel Corporation 0 1 5 0 2.83

Fulgent Genetic currently has a consensus price target of $10.67, suggesting a potential upside of 129.89%. Quidel Corporation has a consensus price target of $47.50, suggesting a potential upside of 9.10%. Given Fulgent Genetic’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Fulgent Genetic is more favorable than Quidel Corporation.

Profitability

This table compares Fulgent Genetic and Quidel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fulgent Genetic -0.42% -0.02% -0.02%
Quidel Corporation -0.03% -0.03% -0.02%

Summary

Quidel Corporation beats Fulgent Genetic on 8 of the 11 factors compared between the two stocks.

Fulgent Genetic Company Profile

Fulgent Genetics, Inc. is a technology company. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. The Company has developed a technology platform that integrates data comparison and suppression algorithms, adaptive learning software, advanced genetic diagnostics tools and integrated laboratory processes. As of December 31, 2015, the Company’s test menu includes approximately 18,000 single-gene tests and over 200 pre-established, multi-gene, disease-specific panels that collectively test for approximately 7,500 genetic conditions, including various cancers, cardiovascular diseases and neurological disorders. The Company’s gene probes are specifically engineered to generate genetic data that is optimized for its software, which enables to rapidly incorporate new genes into its test menu, develop new panels of disease-specific tests and customize tests for its customers.

Quidel Corporation Company Profile

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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