Analyzing SeqLL (NASDAQ:SQL) and DermTech (NASDAQ:DMTK)

SeqLL (NASDAQ:SQL) and DermTech (NASDAQ:DMTK) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for SeqLL and DermTech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SeqLL	0	0	0	0	N/A
DermTech	0	1	1	0	2.50

DermTech has a consensus target price of $3.25, indicating a potential upside of 362.96%. Given DermTech’s higher probable upside, analysts clearly believe DermTech is more favorable than SeqLL.

Institutional & Insider Ownership

1.8% of SeqLL shares are held by institutional investors. Comparatively, 20.5% of DermTech shares are held by institutional investors. 22.3% of SeqLL shares are held by insiders. Comparatively, 5.1% of DermTech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

SeqLL has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, DermTech has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500.

Profitability

This table compares SeqLL and DermTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SeqLL	N/A	-124.09%	-64.18%
DermTech	-659.57%	-123.96%	-67.94%

Valuation & Earnings

This table compares SeqLL and DermTech’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SeqLL	$80,000.00	14.24	-$4.09 million	($16.40)	-0.18
DermTech	$15.30 million	1.59	-$100.89 million	($3.14)	-0.22

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

Summary

DermTech beats SeqLL on 7 of the 13 factors compared between the two stocks.

About SeqLL

SeqLL Inc. operates as a life sciences instrumentation and research services company worldwide. It focus on development of scientific assets and novel intellectual property across multiple omics fields. The company's True Single Molecule Sequencing technology (tSMS) platform offers a single molecule solution for DNA and RNA sequencing through detection of nucleic acids to researchers for analyzing many billions of single molecules in a single experiment and generate accurate and reproducible data. It provide solutions for various applications, such as biomarker discovery and diagnostic assay developments including laboratories associated with universities, scientific research centers, government institutions, and biotechnology and pharmaceutical companies. In addition, the company has research and development agreement with U.S. Department of Justice's Federal Bureau of Investigation to evaluate and determine the forensic capabilities of direct RNA sequencing using tSMS platform; and research collaboration with True Bearing Diagnostics, Inc. performing tSMS on whole-blood RNA to identify transcripts associated with coronary artery disease. Further, it has collaboration agreement with The Bernstein Laboratory to address fundamental questions in chromatin biology and epigenetic regulation; The Ting Laboratory; The Jackson Laboratory for Genomic Medicine assisting in the development of new methods for chromatin interaction analysis in single nuclei, with single-molecule resolution; Weizmann Institute of Science for developed and applied innovative single-molecule technologies; and Tetracore, Inc. to provide with tSMS systems and onsite support. The company was founded in 2013 and is headquartered in Billerica, Massachusetts.

About DermTech

DermTech, Inc., a molecular diagnostic company, engages in the development and marketing of novel non-invasive genomics tests to aid in the diagnosis and management of melanoma in the United States. The company provides DermTech Melanoma Test (DMT), an innovative non-invasive way to enhance melanoma detection for developing product for non-melanoma skin cancers. It also offers DermTech Smart Sticker, which provides a non-invasively way to collect skin sample including standard care by using scalpel to biopsy suspicious lesions. In addition, it provides research services and technology platform on a contract basis to pharmaceutical companies which use the technology for clinical trials. Further, the company develops gene expression assays for the psoriasis, atopic dermatitis, and aging of the skin to pharmaceutical companies to develop drug products in dermatology; and develop custom gene assays to support the pharmaceutical partners. It sells its products through pathology and oncology practitioners. DermTech, Inc. is headquartered in San Diego, California.