Reviewing Exact Sciences (NASDAQ:EXAS) and Veracyte (NASDAQ:VCYT)

Exact Sciences (NASDAQ:EXASGet Rating) and Veracyte (NASDAQ:VCYTGet Rating) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Exact Sciences and Veracyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exact Sciences -37.90% -22.07% -11.19%
Veracyte -18.13% -4.05% -3.76%

Risk & Volatility

Exact Sciences has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Institutional and Insider Ownership

91.0% of Exact Sciences shares are owned by institutional investors. 1.3% of Exact Sciences shares are owned by company insiders. Comparatively, 2.9% of Veracyte shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Exact Sciences and Veracyte, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exact Sciences 0 2 10 0 2.83
Veracyte 0 0 6 0 3.00

Exact Sciences currently has a consensus target price of $69.14, indicating a potential upside of 66.17%. Veracyte has a consensus target price of $42.50, indicating a potential upside of 103.54%. Given Veracyte’s stronger consensus rating and higher possible upside, analysts plainly believe Veracyte is more favorable than Exact Sciences.

Earnings and Valuation

This table compares Exact Sciences and Veracyte’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exact Sciences $1.77 billion 4.17 -$595.63 million ($4.23) -9.84
Veracyte $219.51 million 6.81 -$75.56 million ($0.68) -30.71

Veracyte has lower revenue, but higher earnings than Exact Sciences. Veracyte is trading at a lower price-to-earnings ratio than Exact Sciences, indicating that it is currently the more affordable of the two stocks.

Summary

Veracyte beats Exact Sciences on 9 of the 14 factors compared between the two stocks.

About Exact Sciences

(Get Rating)

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally. The company offers Cologuard, a non-invasive stool-based DNA screening test to detect DNA and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. It also provides Oncotype DX, a gene expression tests for breast, prostate, and colon cancers; Oncotype Test, a tissue test delivering tumor profiling to aid therapy selection for patients with advanced, metastatic, refractory, or recurrent cancer; Oncotype DX AR-V7 Nucleus Detect Test, a liquid-based test for advanced stage prostate cancer; Oncomap ExTra, that provides a complete biological picture of certain refractory, rare, or aggressive cancers; and Covid-19 testing services. The company's pipeline products focus on enhancing the Cologuard test's performance characteristics and developing blood and other fluid-based tests. It has license agreements with MAYO Foundation for Medical Education and Research; and Hologic, Inc. Exact Sciences Corporation was incorporated in 1995 and is headquartered in Madison, Wisconsin.

About Veracyte

(Get Rating)

Veracyte, Inc. operates as a diagnostics company worldwide. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to determine patients with indeterminate results are benign to avoid unnecessary surgery; Decipher Prostate Biopsy and Radical Prostatectomy for prostate cancer diagnosis; Prosigna Breast Cancer Assay for breast cancer diagnosis; Percepta Genomic Sequencing Classifier and Percepta Nasal Swab Test for lung cancer diagnosis; Envisia Genomic Classifier for diagnosing interstitial lung disease, including idiopathic pulmonary fibrosis; and Immunoscore Colon Cancer test for colon cancer diagnosis. It is also developing Percepta Genomic Atlas to help inform lung cancer treatment decisions; Envisia Classifier, the nCounter analysis system; and LymphMark for lymphoma subtyping test. Veracyte, Inc. has technology licensing and collaboration arrangements with Johnson & Johnson; Acerta Pharma; and CareDx. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.

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