Head to Head Contrast: Digipath (OTCMKTS:DIGP) versus NeoGenomics (NASDAQ:NEO)

NeoGenomics (NASDAQ:NEO – Get Rating) and Digipath (OTCMKTS:DIGP – Get Rating) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

88.2% of NeoGenomics shares are owned by institutional investors. 1.0% of NeoGenomics shares are owned by insiders. Comparatively, 10.8% of Digipath shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NeoGenomics and Digipath’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoGenomics	-28.30%	-9.15%	-5.31%
Digipath	-73.57%	N/A	-117.58%

Volatility and Risk

NeoGenomics has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Digipath has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for NeoGenomics and Digipath, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoGenomics	0	4	8	0	2.67
Digipath	0	0	0	0	N/A

NeoGenomics currently has a consensus target price of $19.33, suggesting a potential downside of 0.60%. Given NeoGenomics’ higher probable upside, research analysts clearly believe NeoGenomics is more favorable than Digipath.

Earnings and Valuation

This table compares NeoGenomics and Digipath’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoGenomics	$509.73 million	4.86	-$144.25 million	($1.16)	-16.77
Digipath	$2.70 million	0.20	-$2.06 million	($0.02)	-0.34

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

Summary

NeoGenomics beats Digipath on 8 of the 13 factors compared between the two stocks.

About NeoGenomics

(Get Rating)

NeoGenomics, Inc. is a clinical laboratory company, which engages in cancer genetics diagnostic testing and pharma services. It operates through the Clinical Services and Pharma Services segments. The Clinical Services segment offers cancer testing services to community-based pathologists, hospitals, academic centers, and oncology groups. The Pharma Services segment focuses on supporting pharmaceutical firms in drug development programs by supporting various clinical trials and research. It also provides testing services in support of its pharmaceutical clients’ oncology programs from discovery to commercialization. The company was founded by Michael T. Dent on October 29, 1998 and is headquartered in Fort Myers, FL.

About Digipath

(Get Rating)

DigiPath, Inc. is a service-oriented independent testing laboratory and data analytics company, which engages in the provision of cannabis testing, education, training, and news coverage. The company was founded by Todd Denkin on October 5, 2010 and is headquartered in Las Vegas, NV.