Critical Analysis: Personalis (NASDAQ:PSNL) versus WuXi AppTec (OTCMKTS:WUXAY)

Personalis (NASDAQ:PSNL) and WuXi AppTec (OTCMKTS:WUXAY) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Personalis and WuXi AppTec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Personalis	-164.10%	-53.08%	-38.94%
WuXi AppTec	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Personalis and WuXi AppTec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Personalis	0	1	3	0	2.75
WuXi AppTec	0	0	1	0	3.00

Personalis currently has a consensus target price of $6.38, indicating a potential upside of 323.59%. Given Personalis’ higher possible upside, analysts plainly believe Personalis is more favorable than WuXi AppTec.

Institutional & Insider Ownership

53.8% of Personalis shares are held by institutional investors. 7.5% of Personalis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Personalis and WuXi AppTec’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Personalis	$67.14 million	1.09	-$113.32 million	($2.36)	-0.64
WuXi AppTec	N/A	N/A	N/A	N/A	N/A

WuXi AppTec has lower revenue, but higher earnings than Personalis.

Summary

Personalis beats WuXi AppTec on 5 of the 9 factors compared between the two stocks.

About Personalis

Personalis, Inc. operates as a cancer genomics company worldwide. The company provides sequencing and data analysis services to support the development of cancer therapies and large-scale genetic research programs. It offers NeXT Platform, which provides data analysis for tumor and its immune microenvironment, from a single limited tissue or plasma sample; ImmunoID Next for tumor profiling from tissue; NeXT Liquid Biopsy for tumor profiling from plasma; NeXT Personal, a liquid biopsy offering for personalized tumor tracking for patients; NeXT Dx Test, a genomic cancer profiling test to optimize therapy selection and match patients to clinical trials; and NeXT SHERPA and NeXT NEOPS for neoantigen prediction capabilities. The company also provides ACE platform for clinical and therapeutic applications, such as neoantigen prediction, biomarker identification, and novel drug target selection. It serves pharmaceutical, biopharmaceutical, diagnostic testing, and biotechnology companies; healthcare providers; universities; non-profits; and government entities. The company was incorporated in 2011 and is headquartered in Fremont, California.

About WuXi AppTec

WuXi AppTec Co., Ltd., an investment holding company, provides research, development, and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People's Republic of China, the United States, Europe, and internationally. The company operates through six segments: WuXi Chemistry, WuXi Testing, WuXi Biology, WuXi ATU, WuXi DDSU, and Others. It offers contract research, development, and manufacturing organization services for new drug development from discovery to commercial covering various categories for various synthetic molecular modalities, including small molecules, oligonucleotides, peptides, and complex conjugates; and biology services and solutions that support stand-alone and integrated projects from target discovery to candidate selection and into the clinic. The company also provides seamless drug and medical device testing services from preclinical testing to clinical trials; an integrated end-to-end solution to accelerate time to market for cell and gene therapies; drug discovery services to pharmaceutical and biotech customers; and clinical testing services. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.