Head-To-Head Analysis: Sema4 (NASDAQ:SMFR) versus GeneDx (NASDAQ:WGS)

GeneDx (NASDAQ:WGS – Get Rating) and Sema4 (NASDAQ:SMFR – Get Rating) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for GeneDx and Sema4, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	0	0	0	0	N/A
Sema4	0	2	3	0	2.60

Sema4 has a consensus target price of $2.67, suggesting a potential upside of 457.76%. Given Sema4’s higher possible upside, analysts plainly believe Sema4 is more favorable than GeneDx.

Profitability

This table compares GeneDx and Sema4’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneDx	-121.31%	-53.31%	-36.04%
Sema4	-121.31%	-53.31%	-36.04%

Institutional and Insider Ownership

56.0% of GeneDx shares are held by institutional investors. Comparatively, 56.0% of Sema4 shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

GeneDx has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Sema4 has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Earnings and Valuation

This table compares GeneDx and Sema4’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$212.20 million	0.87	-$245.39 million	($0.93)	-0.51
Sema4	$231.15 million	0.78	-$245.39 million	($0.93)	-0.51

Sema4 is trading at a lower price-to-earnings ratio than GeneDx, indicating that it is currently the more affordable of the two stocks.

About GeneDx

(Get Rating)

Sema4 Holdings Corp is a patient-centered health intelligence company. It is transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories. Sema4 Holdings Corp, formerly known as CM Life Sciences, is based in STAMFORD, Conn.

About Sema4

(Get Rating)

Sema4 Holdings Corp., doing business as Sema4, operates as a health information company that enhances diagnosis, treatment, and prevention of disease through data. The company provides Centrellis, an AI-driven health intelligence platform that delivers comprehensive insights to biopharma to accelerate the drug discovery, development, and commercialization life-cycle, as well as analytics for actionable insights, pre-clinical and clinical trial support, and advanced sequencing services. It also offers Sema4 Signal that enables and advances precision oncology care, from prevention to treatment to remission; and testing for carrier screening, noninvasive prenatal testing, and newborn screening, as well as hereditary cancer testing. In addition, the company provides COVID-19 testing solutions. Sema4 Holdings Corp. was incorporated in 2020 and is headquartered in Stamford, Connecticut.