Head to Head Review: Diplomat Pharmacy (DPLO) vs. Cancer Genetics (CGIX)

Diplomat Pharmacy (NYSE: DPLO) and Cancer Genetics (NASDAQ:CGIX) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

72.2% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 11.1% of Cancer Genetics shares are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by company insiders. Comparatively, 21.3% of Cancer Genetics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Diplomat Pharmacy and Cancer Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.18% 8.30% 4.70%
Cancer Genetics -54.65% -46.21% -24.62%

Volatility and Risk

Diplomat Pharmacy has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Cancer Genetics has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares Diplomat Pharmacy and Cancer Genetics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diplomat Pharmacy $4.41 billion 0.38 $28.27 million $0.12 200.42
Cancer Genetics $27.05 million 2.05 -$15.80 million ($0.82) -2.44

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Diplomat Pharmacy and Cancer Genetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 0 4 4 0 2.50
Cancer Genetics 0 1 3 0 2.75

Diplomat Pharmacy currently has a consensus price target of $20.56, suggesting a potential downside of 14.50%. Cancer Genetics has a consensus price target of $6.00, suggesting a potential upside of 200.00%. Given Cancer Genetics’ stronger consensus rating and higher possible upside, analysts clearly believe Cancer Genetics is more favorable than Diplomat Pharmacy.

Summary

Diplomat Pharmacy beats Cancer Genetics on 10 of the 14 factors compared between the two stocks.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

About Cancer Genetics

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

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