Veracyte (NASDAQ:VCYT) versus Spectral Diagnostics (OTCMKTS:EDTXF) Head-To-Head Review

Spectral Diagnostics (OTCMKTS:EDTXF) and Veracyte (NASDAQ:VCYT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Spectral Diagnostics and Veracyte, as provided by MarketBeat.

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

Veracyte has a consensus target price of $40.90, indicating a potential upside of 68.17%. Given Veracyte’s stronger consensus rating and higher probable upside, analysts clearly believe Veracyte is more favorable than Spectral Diagnostics.

Profitability

This table compares Spectral Diagnostics and Veracyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral Diagnostics	-1,078.10%	N/A	-336.97%
Veracyte	7.13%	6.14%	5.60%

Earnings & Valuation

This table compares Spectral Diagnostics and Veracyte”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral Diagnostics	$1.67 million	100.12	-$11.24 million	($0.07)	-8.36
Veracyte	$445.76 million	4.27	$24.14 million	$0.41	59.32

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

Volatility and Risk

Spectral Diagnostics has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Summary

Veracyte beats Spectral Diagnostics on 11 of the 12 factors compared between the two stocks.

About Spectral Diagnostics

Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.

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.