HTG Molecular Diagnostics (HTGM) and Cepheid (CPHD) Critical Analysis

HTG Molecular Diagnostics (NASDAQ: HTGM) and Cepheid (NASDAQ:CPHD) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitabiliy, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

HTG Molecular Diagnostics has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Cepheid has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for HTG Molecular Diagnostics and Cepheid, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HTG Molecular Diagnostics 0 1 2 0 2.67
Cepheid 0 10 0 0 2.00

HTG Molecular Diagnostics presently has a consensus price target of $6.17, suggesting a potential upside of 175.30%. Cepheid has a consensus price target of $48.00, suggesting a potential downside of 9.35%. Given HTG Molecular Diagnostics’ stronger consensus rating and higher probable upside, analysts plainly believe HTG Molecular Diagnostics is more favorable than Cepheid.

Earnings and Valuation

This table compares HTG Molecular Diagnostics and Cepheid’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HTG Molecular Diagnostics $5.64 million 3.78 -$21.68 million ($3.39) -0.66
Cepheid N/A N/A N/A ($0.69) -76.74

Cepheid has higher revenue, but lower earnings than HTG Molecular Diagnostics. Cepheid is trading at a lower price-to-earnings ratio than HTG Molecular Diagnostics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares HTG Molecular Diagnostics and Cepheid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HTG Molecular Diagnostics -440.31% -1,538.49% -117.27%
Cepheid -6.88% -11.54% -5.18%

Institutional and Insider Ownership

28.1% of HTG Molecular Diagnostics shares are held by institutional investors. Comparatively, 95.8% of Cepheid shares are held by institutional investors. 7.6% of HTG Molecular Diagnostics shares are held by insiders. Comparatively, 4.2% of Cepheid 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.

Summary

Cepheid beats HTG Molecular Diagnostics on 6 of the 11 factors compared between the two stocks.

About HTG Molecular Diagnostics

HTG Molecular Diagnostics, Inc. is a commercial-stage company that develops and markets a technology platform to facilitate the routine use of complex molecular profiling. The Company’s HTG Edge and HTG EdgeSeq platforms, consisting of instrumentation, consumables and software analytics, are used in sample profiling applications, including tumor profiling, molecular diagnostic testing and biomarker development. The Company’s HTG Edge and HTG EdgeSeq platforms automate the molecular profiling of genes and gene activity using its nuclease protection chemistry on a range of biological samples. The Company’s HTG EdgeSeq chemistry, together with its HTG Edge or HTG EdgeSeq instrumentation and software, automates and adapts its nuclease protection chemistry to enable analysis using next generation sequencing (NGS) instrumentation. The HTG EdgeSeq system utilizes substantially the same sample preparation reagents as its original chemistry, but allows for read out on an NGS instrument.

About Cepheid

Cepheid is a molecular diagnostics company. The Company develops, manufactures and markets fully-integrated systems for testing in the Clinical and Non-Clinical markets. The Company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company’s systems integrate these steps and analyze biological samples in test cartridges. Its primary offering is the GeneXpert system, which integrates sample preparation in addition to Deoxyribonucleic acid (DNA) amplification and detection. The GeneXpert system is designed for a range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories. It also offers the SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.

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