Interpace Diagnostics Group (NASDAQ: IDXG) and Vectrus (NYSE:VEC) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

Interpace Diagnostics Group has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Vectrus has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.

Earnings and Valuation

This table compares Interpace Diagnostics Group and Vectrus’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $13.09 million 2.42 -$8.33 million $3.02 0.39
Vectrus $1.19 billion 0.30 $23.65 million $1.81 17.90

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

Profitability

This table compares Interpace Diagnostics Group and Vectrus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -6.33% -5.69% -3.06%
Vectrus 2.02% 17.25% 4.79%

Institutional and Insider Ownership

6.0% of Interpace Diagnostics Group shares are owned by institutional investors. Comparatively, 86.0% of Vectrus shares are owned by institutional investors. 0.7% of Interpace Diagnostics Group shares are owned by insiders. Comparatively, 3.9% of Vectrus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Interpace Diagnostics Group and Vectrus, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 1 0 3.00
Vectrus 0 1 1 0 2.50

Interpace Diagnostics Group currently has a consensus target price of $5.00, indicating a potential upside of 323.73%. Vectrus has a consensus target price of $37.00, indicating a potential upside of 14.20%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Interpace Diagnostics Group is more favorable than Vectrus.

Summary

Vectrus beats Interpace Diagnostics Group on 9 of the 13 factors compared between the two stocks.

About Interpace Diagnostics Group

Interpace Diagnostics Group, Inc., formerly PDI, Inc., is focused on developing and commercializing molecular diagnostic tests principally focused on early detection of high potential progressors to cancer and leveraging the latest technology and personalized medicine for patient diagnosis and management. The Company operates through molecular diagnostics segment. It offers molecular tests, such as PancraGen, which is a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment utilizing its PathFinder platform; ThyGenX, which assesses thyroid nodules for risk of malignancy, and ThyraMIR, which assesses thyroid nodules risk of malignancy utilizing a gene expression assay. Through its molecular diagnostics business, the Company provides diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers, which are focused on early detection of cancer.

About Vectrus

Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.

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