BioNexus Gene Lab (NASDAQ:BGLC) & CareDx (NASDAQ:CDNA) Critical Analysis

CareDx (NASDAQ:CDNA) and BioNexus Gene Lab (NASDAQ:BGLC) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares CareDx and BioNexus Gene Lab’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareDx	$280.32 million	1.40	-$190.28 million	($3.54)	-2.14
BioNexus Gene Lab	$9.77 million	1.08	-$2.63 million	($0.02)	-29.68

BioNexus Gene Lab has lower revenue, but higher earnings than CareDx. BioNexus Gene Lab is trading at a lower price-to-earnings ratio than CareDx, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CareDx and BioNexus Gene Lab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareDx	0	2	2	0	2.50
BioNexus Gene Lab	0	0	0	0	N/A

CareDx presently has a consensus price target of $13.50, suggesting a potential upside of 78.57%. Given CareDx’s higher possible upside, equities research analysts clearly believe CareDx is more favorable than BioNexus Gene Lab.

Institutional & Insider Ownership

18.9% of BioNexus Gene Lab shares are held by institutional investors. 4.2% of CareDx shares are held by insiders. Comparatively, 6.8% of BioNexus Gene Lab shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CareDx and BioNexus Gene Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareDx	-67.88%	-51.40%	-37.85%
BioNexus Gene Lab	-26.90%	-32.99%	-26.99%

Summary

BioNexus Gene Lab beats CareDx on 7 of the 11 factors compared between the two stocks.

About CareDx

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.

About BioNexus Gene Lab

BioNexus Gene Lab Corp., through its subsidiary, Chemrex Corporation Sdn. Bhd., engages in the wholesale of chemical raw material products in Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia. Its chemical raw material products used to produce handrails, bench tops, automotive and aero parts, cleanroom panels, and instruments. The company, through its subsidiary, BioNexus Gene Lab Sdn. Bhd, is also involved in developing and providing non-invasive liquid biopsy tests for the early detection of biomarkers. The company was incorporated in 2017 and is based in Kuala Lumpur, Malaysia.