Contrasting CochLear (OTCMKTS:CHEOY) & CareDx (NASDAQ:CDNA)

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

Valuation and Earnings

This table compares CareDx and CochLear”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareDx	$358.00 million	2.75	$52.55 million	$1.19	16.08
CochLear	$1.53 billion	7.47	$251.85 million	N/A	N/A

CochLear has higher revenue and earnings than CareDx.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareDx	19.65%	20.15%	15.15%
CochLear	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for CareDx and CochLear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareDx	0	5	4	0	2.44
CochLear	0	3	0	2	2.80

CareDx currently has a consensus target price of $26.67, indicating a potential upside of 39.32%. Given CareDx’s higher possible upside, analysts clearly believe CareDx is more favorable than CochLear.

Volatility & Risk

CareDx has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, CochLear has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Summary

CareDx beats CochLear on 6 of the 11 factors compared between the two stocks.

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.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.