Reviewing Biodesix (NASDAQ:BDSX) and HealthEquity (NASDAQ:HQY)

HealthEquity (NASDAQ:HQY) and Biodesix (NASDAQ:BDSX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Profitability

This table compares HealthEquity and Biodesix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthEquity	14.86%	12.94%	8.06%
Biodesix	-49.31%	-504.41%	-43.94%

Analyst Ratings

This is a summary of current recommendations for HealthEquity and Biodesix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthEquity	1	2	12	2	2.88
Biodesix	1	1	4	0	2.50

HealthEquity presently has a consensus target price of $119.60, indicating a potential upside of 42.38%. Biodesix has a consensus target price of $32.50, indicating a potential upside of 264.35%. Given Biodesix’s higher possible upside, analysts clearly believe Biodesix is more favorable than HealthEquity.

Risk & Volatility

HealthEquity has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Biodesix has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

99.6% of HealthEquity shares are held by institutional investors. Comparatively, 21.0% of Biodesix shares are held by institutional investors. 1.5% of HealthEquity shares are held by insiders. Comparatively, 30.1% of Biodesix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares HealthEquity and Biodesix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthEquity	$1.20 billion	5.98	$96.70 million	$2.18	38.53
Biodesix	$71.32 million	1.00	-$42.93 million	($5.56)	-1.60

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

Summary

HealthEquity beats Biodesix on 12 of the 15 factors compared between the two stocks.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

About Biodesix

Biodesix, Inc. operates as a data-driven diagnostic solutions company in the United States. The company offers blood-based lung tests, including Nodify XL2 and Nodify CDT tests, together marketed as part of Nodify Lung Nodule Risk Assessment testing strategy, to assess the risk of lung cancer and help in identifying the appropriate treatment pathway and help physicians in reclassifying risk of malignancy in patients with suspicious lung nodules. It also provides GeneStrat ddPCR and NGS, and VeriStrat tests, which are used in the diagnosis of lung cancer to measure the presence of mutations in the tumor and the state of the patient's immune system to establish the patient's prognosis and help guide treatment decisions. In addition, the company, through its partnership with Bio-Rad Laboratories, Inc., provides Bio-Rad SARS-CoV-2 ddPCR, a COVID-19 Test under Biodesix WorkSafe testing program; and Platelia SARS-CoV-2 Total Ab test, an antibody test for detecting a B-cell immune response to SARS-CoV-2 that indicate recent or prior infection. Further, it offers diagnostic and clinical research, as well as clinical trial testing services to biopharmaceutical companies; and discovers, develops, and commercializes companion diagnostics. The company was formerly known as Elston Technologies, Inc. and as changed to Biodesix, Inc. in 2006. Biodesix, Inc. was incorporated in 2005 and is headquartered in Louisville, Colorado.