Comparing Exagen (NASDAQ:XGN) and Humana (NYSE:HUM)

Exagen (NASDAQ:XGN) and Humana (NYSE:HUM) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Risk and Volatility

Exagen has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Humana has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares Exagen and Humana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exagen	$66.57 million	2.97	-$19.95 million	($0.81)	-10.09
Humana	$145.68 billion	0.32	$1.19 billion	$10.57	36.68

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

Profitability

This table compares Exagen and Humana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exagen	-26.61%	-104.46%	-28.93%
Humana	0.88%	11.20%	3.94%

Analyst Recommendations

This is a summary of current ratings and target prices for Exagen and Humana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exagen	1	0	7	1	2.89
Humana	1	13	16	0	2.50

Exagen currently has a consensus target price of $9.62, suggesting a potential upside of 17.81%. Humana has a consensus target price of $422.52, suggesting a potential upside of 8.99%. Given Exagen’s stronger consensus rating and higher possible upside, research analysts clearly believe Exagen is more favorable than Humana.

Insider and Institutional Ownership

75.2% of Exagen shares are held by institutional investors. Comparatively, 92.4% of Humana shares are held by institutional investors. 10.4% of Exagen shares are held by insiders. Comparatively, 0.2% of Humana shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Humana beats Exagen on 9 of the 15 factors compared between the two stocks.

About Exagen

Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, California.

About Humana

Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.