Analyzing Progyny (NASDAQ:PGNY) and CareDx (NASDAQ:CDNA)

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

Insider and Institutional Ownership

94.9% of Progyny shares are held by institutional investors. 9.4% of Progyny shares are held by insiders. Comparatively, 4.4% of CareDx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Progyny and CareDx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progyny	$1.17 billion	1.37	$54.34 million	$0.59	31.47
CareDx	$340.83 million	2.27	$52.55 million	$1.02	14.24

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

Risk and Volatility

Progyny has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, CareDx has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Progyny and CareDx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progyny	0	4	5	1	2.70
CareDx	2	3	4	0	2.22

Progyny presently has a consensus target price of $25.44, indicating a potential upside of 37.02%. CareDx has a consensus target price of $25.50, indicating a potential upside of 75.62%. Given CareDx’s higher possible upside, analysts clearly believe CareDx is more favorable than Progyny.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Progyny	4.28%	10.69%	7.12%
CareDx	17.97%	18.03%	12.88%

Summary

Progyny beats CareDx on 8 of the 15 factors compared between the two stocks.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

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.