CareDx (NASDAQ:CDNA – Get Free Report) and Avantor (NYSE:AVTR – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.
Institutional and Insider Ownership
95.1% of Avantor shares are owned by institutional investors. 2.4% of CareDx shares are owned by company insiders. Comparatively, 0.3% of Avantor shares are owned by company 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.
Profitability
This table compares CareDx and Avantor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareDx | -2.01% | -2.65% | -1.96% |
| Avantor | -8.42% | 9.95% | 4.78% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareDx | $412.82 million | 2.90 | -$21.35 million | ($0.16) | -144.59 |
| Avantor | $6.55 billion | 1.00 | -$530.20 million | ($0.81) | -11.84 |
CareDx has higher earnings, but lower revenue than Avantor. CareDx is trading at a lower price-to-earnings ratio than Avantor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for CareDx and Avantor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareDx | 1 | 4 | 1 | 0 | 2.00 |
| Avantor | 3 | 11 | 2 | 0 | 1.94 |
CareDx presently has a consensus price target of $25.00, indicating a potential upside of 8.06%. Avantor has a consensus price target of $10.57, indicating a potential upside of 10.21%. Given Avantor’s higher possible upside, analysts plainly believe Avantor is more favorable than CareDx.
Risk & Volatility
CareDx has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, Avantor has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
About CareDx
CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.
About Avantor
Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.
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