Head-To-Head Analysis: Humana (NYSE:HUM) versus Biodesix (NASDAQ:BDSX)

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

Volatility and Risk

Biodesix has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Humana has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Biodesix and Humana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biodesix	$88.50 million	3.22	-$35.26 million	($3.17)	-8.51
Humana	$129.66 billion	0.38	$1.19 billion	$10.57	39.24

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

Insider and Institutional Ownership

21.0% of Biodesix shares are owned by institutional investors. Comparatively, 92.4% of Humana shares are owned by institutional investors. 23.2% of Biodesix shares are owned by company insiders. Comparatively, 0.2% of Humana shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Biodesix	-26.97%	-788.19%	-30.33%
Humana	0.88%	11.20%	3.94%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biodesix	1	0	3	1	2.80
Humana	1	15	14	0	2.43

Biodesix currently has a consensus price target of $31.33, indicating a potential upside of 16.14%. Humana has a consensus price target of $403.91, indicating a potential downside of 2.61%. Given Biodesix’s stronger consensus rating and higher possible upside, research analysts plainly believe Biodesix is more favorable than Humana.

Summary

Humana beats Biodesix on 10 of the 15 factors compared between the two stocks.

About Biodesix

Biodesix, Inc. operates as a data-driven diagnostic solutions company in the United States. The company offers blood-based lung tests, including Nodify XL2 and Nodify CDT tests, together marketed as part of Nodify Lung Nodule Risk Assessment testing strategy, to assess the risk of lung cancer and help in identifying the appropriate treatment pathway and help physicians in reclassifying risk of malignancy in patients with suspicious lung nodules. It also provides GeneStrat ddPCR and NGS, and VeriStrat tests, which are used in the diagnosis of lung cancer to measure the presence of mutations in the tumor and the state of the patient's immune system to establish the patient's prognosis and help guide treatment decisions. In addition, the company, through its partnership with Bio-Rad Laboratories, Inc., provides Bio-Rad SARS-CoV-2 ddPCR, a COVID-19 Test under Biodesix WorkSafe testing program; and Platelia SARS-CoV-2 Total Ab test, an antibody test for detecting a B-cell immune response to SARS-CoV-2 that indicate recent or prior infection. Further, it offers diagnostic and clinical research, as well as clinical trial testing services to biopharmaceutical companies; and discovers, develops, and commercializes companion diagnostics. The company was formerly known as Elston Technologies, Inc. and as changed to Biodesix, Inc. in 2006. Biodesix, Inc. was incorporated in 2005 and is headquartered in Louisville, Colorado.

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.