Head-To-Head Analysis: Valeritas (VLRX) versus Interpace Diagnostics Group (IDXG)

Valeritas (NASDAQ: IDXG) and Interpace Diagnostics Group (NASDAQ:IDXG) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Valeritas and Interpace Diagnostics Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valeritas -205.12% -1,768.69% -94.08%
Interpace Diagnostics Group -71.14% -34.58% -25.64%

Valuation & Earnings

This table compares Valeritas and Interpace Diagnostics Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valeritas $20.25 million 1.49 -$49.30 million ($8.29) -0.15
Interpace Diagnostics Group $15.90 million 2.38 -$12.21 million ($0.81) -1.65

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Valeritas and Interpace Diagnostics Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valeritas 0 1 2 0 2.67
Interpace Diagnostics Group 0 0 4 0 3.00

Valeritas currently has a consensus price target of $3.75, suggesting a potential upside of 209.92%. Interpace Diagnostics Group has a consensus price target of $3.19, suggesting a potential upside of 137.87%. Given Valeritas’ higher possible upside, equities analysts clearly believe Valeritas is more favorable than Interpace Diagnostics Group.

Insider and Institutional Ownership

7.4% of Valeritas shares are owned by institutional investors. Comparatively, 12.5% of Interpace Diagnostics Group shares are owned by institutional investors. 1.8% of Valeritas shares are owned by company insiders. Comparatively, 2.8% of Interpace Diagnostics Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Valeritas has a beta of 4.55, indicating that its stock price is 355% more volatile than the S&P 500. Comparatively, Interpace Diagnostics Group has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.

Summary

Interpace Diagnostics Group beats Valeritas on 10 of the 14 factors compared between the two stocks.

Valeritas Company Profile

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States and China. It offers V-Go, a wearable insulin delivery device for basal-bolus therapy. The company also develops h-Patch, a controlled delivery technology platform; Mini-Ject technology for needle-free injection systems; and Micro-Trans technology for microneedle design, fabrication, and drug delivery. In addition, its products include V-Go Prefill, which is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go Link that is in the early stages of development for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors in the United States. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc. develops and commercializes molecular diagnostic tests to detect genetic and other molecular alterations associated with gastrointestinal and endocrine cancers. It offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion molecular test that helps physicians better assess risk of pancreaticobiliary cancers using its proprietary PathFinder platform; ThyGenX, an oncogenic mutation panel that helps identify malignant thyroid nodules; and ThyraMIR, an microRNA gene expression assay that helps to classify risk of cancer in thyroid nodules. The company's customers consist primarily of physicians, hospitals, and clinics. The company was formerly known as PDI, Inc. and changed its name to Interpace Diagnostics Group, Inc. in December 2015. Interpace Diagnostics Group, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

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