CareDx (NASDAQ:CDNA) and Aeon Global Health (OTCMKTS:AGHC) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares CareDx and Aeon Global Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CareDx $48.32 million 21.48 -$55.46 million ($0.77) -34.65
Aeon Global Health $16.30 million 0.27 -$8.00 million ($1.15) -0.52

Aeon Global Health has lower revenue, but higher earnings than CareDx. CareDx is trading at a lower price-to-earnings ratio than Aeon Global Health, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CareDx has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Aeon Global Health has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CareDx and Aeon Global Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareDx 0 1 2 1 3.00
Aeon Global Health 0 0 1 0 3.00

CareDx currently has a consensus target price of $35.00, suggesting a potential upside of 31.18%. Given CareDx’s higher possible upside, research analysts clearly believe CareDx is more favorable than Aeon Global Health.

Profitability

This table compares CareDx and Aeon Global Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareDx -113.89% -125.24% -37.81%
Aeon Global Health -43.04% -337.14% -61.39%

Insider and Institutional Ownership

77.0% of CareDx shares are owned by institutional investors. 3.4% of CareDx shares are owned by company insiders. Comparatively, 11.5% of Aeon Global Health shares are owned 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.

Summary

CareDx beats Aeon Global Health on 10 of the 14 factors compared between the two stocks.

About CareDx

CareDx, Inc., a transplant diagnostics company, together with its subsidiaries, engages in the discovery, development, and commercialization of diagnostic surveillance solutions for transplant patients worldwide. It operates through two segments, Post-Transplant Diagnostics and Pre-Transplant Diagnostics. The Post-Transplant Diagnostics segment develops and provides a diagnostic surveillance testing solution for heart and kidney transplant recipients. It offers AlloMap, a heart transplant molecular test; and AlloSure, a donor-derived cell free DNA test initially used for kidney transplant patients. The Pre-Transplant Diagnostics segment develops, manufactures, markets, and sells products that increase the chance of successful transplants by facilitating a match between a donor and a recipient of stem cells and organs. It sells Olerup SSP, which is used to type human leukocyte antigen (HAL) alleles based on sequence-specific primer technology; Olerup QTYPE, a test kit for sequence based HLA typing; Olerup SBT, a test kit for sequence based HLA typing; and XM-ONE, a test that identifies a patient's antigens against HLA Class I or Class II, as well as antibodies against a donor's endothelium. This segment offers its products directly to customers, as well as through third-party distributors. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. CareDx, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.

About Aeon Global Health

Aeon Global Health Corp., together with its subsidiaries, provides various clinical laboratory testing services in the United States. The company operates through Laboratory Testing Services and Web-Based Software segments. Its laboratory testing services include the testing of an individual's blood, urine, or saliva for the presence of drugs or chemicals, as well as the patient's DNA profile. The company primarily offers medical toxicology, DNA pharmacogenomics, cancer genetic testing, and molecular biology tests. It also provides Web-based services as software as a service for Web-based revenue cycle management applications; and telehealth products and services that enable healthcare organizations to coordinate care for patients, and enhance related administrative and clinical workflows, as well as compliance with regulatory requirements. In addition, AEON Global Health Corp. offers post contract customer support services. The company was formerly known as Authentidate Holding Corp. and changed its name to Aeon Global Health Corp. in January 2018. Aeon Global Health Corp. is headquartered in Gainesville, Georgia.

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