Critical Comparison: Fulgent Genetics (NASDAQ:FLGT) versus Enovis (NYSE:ENOV)

Fulgent Genetics (NASDAQ:FLGT) and Enovis (NYSE:ENOV) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

48.1% of Fulgent Genetics shares are held by institutional investors. Comparatively, 98.5% of Enovis shares are held by institutional investors. 36.2% of Fulgent Genetics shares are held by insiders. Comparatively, 2.9% of Enovis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Fulgent Genetics and Enovis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulgent Genetics	$322.67 million	1.64	-$60.51 million	($2.39)	-7.82
Enovis	$2.25 billion	0.56	-$1.18 billion	($19.88)	-1.09

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

Profitability

This table compares Fulgent Genetics and Enovis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulgent Genetics	-23.04%	-3.24%	-2.97%
Enovis	-49.92%	10.32%	4.57%

Volatility and Risk

Fulgent Genetics has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Enovis has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fulgent Genetics and Enovis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulgent Genetics	1	2	2	0	2.20
Enovis	1	1	7	0	2.67

Fulgent Genetics presently has a consensus target price of $27.00, indicating a potential upside of 44.54%. Enovis has a consensus target price of $44.50, indicating a potential upside of 105.09%. Given Enovis’ stronger consensus rating and higher probable upside, analysts plainly believe Enovis is more favorable than Fulgent Genetics.

Summary

Enovis beats Fulgent Genetics on 9 of the 14 factors compared between the two stocks.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.