CareDx (NASDAQ:CDNA) & Grail (NASDAQ:GRAL) Financial Review

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

Profitability

This table compares Grail and CareDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grail	N/A	N/A	N/A
CareDx	-45.90%	-53.70%	-30.42%

Earnings and Valuation

This table compares Grail and CareDx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grail	$125.60 million	7.00	N/A	N/A	N/A
CareDx	$333.79 million	3.18	-$190.28 million	$1.02	18.78

Grail has higher earnings, but lower revenue than CareDx.

Analyst Ratings

This is a breakdown of current ratings for Grail and CareDx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grail	0	3	0	0	2.00
CareDx	0	3	4	0	2.57

Grail presently has a consensus price target of $20.00, suggesting a potential downside of 22.87%. CareDx has a consensus price target of $31.83, suggesting a potential upside of 66.14%. Given CareDx’s stronger consensus rating and higher possible upside, analysts plainly believe CareDx is more favorable than Grail.

About Grail

GRAIL, Inc. is a healthcare company. It engages in the development of a technology for early detection of cancer. The company was founded by Jeffrey T. Huber, William H. Rastetter, and Mostafa Ronaghi on September 11, 2015 and is headquartered in Menlo Park, CA.

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.