CannLabs (OTCMKTS:CANL) & Veracyte (NASDAQ:VCYT) Head-To-Head Contrast

Veracyte (NASDAQ:VCYT) and CannLabs (OTCMKTS:CANL) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Veracyte and CannLabs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veracyte	-2.18%	3.02%	2.80%
CannLabs	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Veracyte and CannLabs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veracyte	1	1	8	0	2.70
CannLabs	0	0	0	0	0.00

Veracyte presently has a consensus target price of $42.60, suggesting a potential upside of 36.85%. Given Veracyte’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Veracyte is more favorable than CannLabs.

Earnings and Valuation

This table compares Veracyte and CannLabs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veracyte	$445.76 million	5.44	-$74.40 million	$0.30	103.77
CannLabs	N/A	N/A	N/A	N/A	N/A

CannLabs has lower revenue, but higher earnings than Veracyte.

Volatility and Risk

Veracyte has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, CannLabs has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Summary

Veracyte beats CannLabs on 7 of the 8 factors compared between the two stocks.

About Veracyte

Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.

About CannLabs

CannLabs, Inc. provides cannabis testing laboratory services in the United States. Its testing services include potency testing, residual solvent analysis, microbiological testing, pesticide testing, heavy metals testing, nutrient analysis, terpenes analysis, shelf-life/stability studies, gene expression testing, and genotyping/phenotyping testing. The company also offers data/analytics and consulting, as well as education services. CannLabs, Inc. was incorporated in 2010 and is based in Denver, Colorado.