Contrasting Bausch Health Cos (NYSE:BHC) & Personalis (NASDAQ:PSNL)

Bausch Health Cos (NYSE:BHC) and Personalis (NASDAQ:PSNL) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Bausch Health Cos and Personalis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch Health Cos	1	6	0	0	1.86
Personalis	0	0	6	0	3.00

Bausch Health Cos currently has a consensus price target of $7.42, indicating a potential upside of 16.25%. Personalis has a consensus price target of $7.67, indicating a potential upside of 27.14%. Given Personalis’ stronger consensus rating and higher probable upside, analysts plainly believe Personalis is more favorable than Bausch Health Cos.

Profitability

This table compares Bausch Health Cos and Personalis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch Health Cos	-0.41%	-540.45%	5.26%
Personalis	-98.10%	-48.78%	-34.70%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch Health Cos	$9.63 billion	0.25	-$46.00 million	($0.11)	-58.00
Personalis	$84.61 million	6.29	-$81.28 million	($1.29)	-4.67

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

Institutional and Insider Ownership

78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 61.9% of Personalis shares are held by institutional investors. 8.1% of Bausch Health Cos shares are held by insiders. Comparatively, 3.8% of Personalis shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Bausch Health Cos has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Personalis has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

About Personalis

Personalis, Inc. develops and markets advanced cancer genomic tests and analytics primarily in the United States, Europe, and the Asia-Pacific. Its tests and analytics are used by pharmaceutical companies for translational research, biomarker discovery, and development of personalized cancer therapies, as well as advanced tests are used by physicians to detect cancer recurrence, monitor cancer evolution, and uncover insights for therapy selection. The company offers NeXT Personal, a tumor-informed liquid biopsy test for detection of minimal residual disease (MRD) and recurrence in cancer; and ImmunoID NeXT, a tissue-based test that combines whole exome (DNA) and whole transcriptome (RNA) sequencing data with advanced analytics to provide a multi-dimensional view of the tumor and the tumor microenvironment from a single sample. It also provides NeXT Personal Dx, a tumor-informed liquid biopsy test for detection of MRD and recurrence in cancer; and NeXT Dx, a comprehensive tumor profiling test that unlocks the entire exome (DNA) and transcriptome (RNA) with matched tumor-normal analysis. In addition, the company performs whole exome sequencing (WES) of cancer tissue and matched blood samples for diagnostic companies as an input to their products; and whole genome sequencing (WGS) on human samples for research projects, such as population sequencing initiatives, as well as offers sequencing and data analysis services to support population sequencing initiatives. Its customers include pharmaceutical companies, biopharmaceutical companies, diagnostics companies, universities, non-profits, government entities, and patients. The company was incorporated in 2011 and is headquartered in Fremont, California.