Head to Head Contrast: HealthEquity (NASDAQ:HQY) vs. Co-Diagnostics (NASDAQ:CODX)

Co-Diagnostics (NASDAQ:CODX) and HealthEquity (NASDAQ:HQY) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Co-Diagnostics and HealthEquity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Co-Diagnostics	1	2	1	1	2.40
HealthEquity	0	3	12	2	2.94

Co-Diagnostics presently has a consensus target price of $1.83, suggesting a potential upside of 437.00%. HealthEquity has a consensus target price of $120.27, suggesting a potential upside of 24.26%. Given Co-Diagnostics’ higher probable upside, equities analysts clearly believe Co-Diagnostics is more favorable than HealthEquity.

Volatility & Risk

Co-Diagnostics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Profitability

This table compares Co-Diagnostics and HealthEquity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Co-Diagnostics	-6,347.34%	-70.26%	-61.19%
HealthEquity	14.86%	12.94%	8.06%

Earnings & Valuation

This table compares Co-Diagnostics and HealthEquity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Co-Diagnostics	$3.91 million	5.32	-$37.64 million	($0.99)	-0.34
HealthEquity	$1.20 billion	6.89	$96.70 million	$2.18	44.40

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

Institutional and Insider Ownership

15.0% of Co-Diagnostics shares are held by institutional investors. Comparatively, 99.6% of HealthEquity shares are held by institutional investors. 5.4% of Co-Diagnostics shares are held by insiders. Comparatively, 1.5% of HealthEquity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

HealthEquity beats Co-Diagnostics on 12 of the 15 factors compared between the two stocks.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.