Financial Review: InfuSystem (NYSE:INFU) and Guardant Health (NASDAQ:GH)

Guardant Health (NASDAQ:GH – Get Free Report) and InfuSystem (NYSE:INFU – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

92.6% of Guardant Health shares are held by institutional investors. Comparatively, 71.1% of InfuSystem shares are held by institutional investors. 5.6% of Guardant Health shares are held by company insiders. Comparatively, 10.8% of InfuSystem shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Guardant Health and InfuSystem, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guardant Health 1 0 23 1 2.96
InfuSystem 0 1 2 0 2.67

Guardant Health currently has a consensus target price of $188.12, suggesting a potential upside of 6.14%. InfuSystem has a consensus target price of $17.50, suggesting a potential upside of 37.69%. Given InfuSystem’s higher possible upside, analysts clearly believe InfuSystem is more favorable than Guardant Health.

Valuation and Earnings

This table compares Guardant Health and InfuSystem”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guardant Health $982.02 million 24.22 -$416.28 million ($3.49) -50.79
InfuSystem $143.34 million 1.79 $870,000.00 $0.41 31.00

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

Profitability

This table compares Guardant Health and InfuSystem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guardant Health -38.33% N/A -25.40%
InfuSystem 1.12% 2.78% 1.41%

Risk & Volatility

Guardant Health has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, InfuSystem has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Summary

InfuSystem beats Guardant Health on 8 of the 15 factors compared between the two stocks.

About Guardant Health

(Get Free Report)

Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.

About InfuSystem

(Get Free Report)

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

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