IRIS International (NASDAQ: IRIS) and TrovaGene (NASDAQ:TROV) are both small-cap diagnostic & testing substances companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for IRIS International and TrovaGene, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
TrovaGene 1 0 2 0 2.33

TrovaGene has a consensus price target of $4.60, suggesting a potential upside of 576.47%. Given TrovaGene’s higher possible upside, analysts plainly believe TrovaGene is more favorable than IRIS International.

Profitability

This table compares IRIS International and TrovaGene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIS International -61.58% -36.70% -29.47%
TrovaGene -10,390.96% -201.07% -85.12%

Insider & Institutional Ownership

68.9% of IRIS International shares are owned by institutional investors. Comparatively, 8.9% of TrovaGene shares are owned by institutional investors. 9.7% of IRIS International shares are owned by company insiders. Comparatively, 7.4% of TrovaGene 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 and Earnings

This table compares IRIS International and TrovaGene’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
IRIS International N/A N/A N/A $0.04 85.25
TrovaGene $380,000.00 68.18 -$39.20 million ($1.26) -0.54

IRIS International has higher revenue, but lower earnings than TrovaGene. TrovaGene is trading at a lower price-to-earnings ratio than IRIS International, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

IRIS International has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, TrovaGene has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

IRIS International beats TrovaGene on 7 of the 10 factors compared between the two stocks.

IRIS International Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

TrovaGene Company Profile

Trovagene, Inc. (TrovaGene) is a molecular diagnostic company. The Company focuses on the development and commercialization of a molecular diagnostic technology for use in disease detection and monitoring across a range of medical disciplines. Its primary internal focus is to leverage its cell-free molecular diagnostic platform to facilitate improvements in the field of oncology, while its external focus includes entering into license agreements or collaborations to develop its technology in areas, such as infectious disease, transplant medicine and prenatal genetics. It has ongoing clinical collaborations to demonstrate the ability to determine and monitor mutational status and response to therapy in lung, colon, pancreatic and skin cancer. It uses its molecular diagnostic technology for the detection of cell-free deoxyribonucleic acid (DNA) originating from diseased cell death that can be isolated and detected from urine, blood and tissue samples to develop disease management.

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