Analyzing Personalis (NASDAQ:PSNL) and Biodesix (NASDAQ:BDSX)

Personalis (NASDAQ:PSNL) and Biodesix (NASDAQ:BDSX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Personalis	-147.38%	-61.42%	-41.05%
Biodesix	-106.23%	-29,379.44%	-58.96%

Volatility and Risk

Personalis has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Biodesix has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Personalis and Biodesix’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Personalis	$73.48 million	0.89	-$108.30 million	($2.25)	-0.57
Biodesix	$49.09 million	2.47	-$52.15 million	($0.65)	-1.92

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

Institutional & Insider Ownership

61.9% of Personalis shares are owned by institutional investors. Comparatively, 21.0% of Biodesix shares are owned by institutional investors. 4.1% of Personalis shares are owned by company insiders. Comparatively, 63.8% of Biodesix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Personalis	0	0	2	0	3.00
Biodesix	0	0	3	0	3.00

Personalis currently has a consensus price target of $5.50, indicating a potential upside of 326.36%. Biodesix has a consensus price target of $3.50, indicating a potential upside of 180.00%. Given Personalis’ higher possible upside, equities analysts plainly believe Personalis is more favorable than Biodesix.

Summary

Personalis beats Biodesix on 7 of the 13 factors compared between the two stocks.

About Personalis

Personalis, Inc. develops and markets advanced cancer genomic tests and analytics primarily in the United States, Europe, and the Asia-Pacific. Its tests and analytics are used by pharmaceutical companies for translational research, biomarker discovery, and development of personalized cancer therapies, as well as advanced tests are used by physicians to detect cancer recurrence, monitor cancer evolution, and uncover insights for therapy selection. The company offers NeXT Personal, a tumor-informed liquid biopsy test for detection of minimal residual disease (MRD) and recurrence in cancer; and ImmunoID NeXT, a tissue-based test that combines whole exome (DNA) and whole transcriptome (RNA) sequencing data with advanced analytics to provide a multi-dimensional view of the tumor and the tumor microenvironment from a single sample. It also provides NeXT Personal Dx, a tumor-informed liquid biopsy test for detection of MRD and recurrence in cancer; and NeXT Dx, a comprehensive tumor profiling test that unlocks the entire exome (DNA) and transcriptome (RNA) with matched tumor-normal analysis. In addition, the company performs whole exome sequencing (WES) of cancer tissue and matched blood samples for diagnostic companies as an input to their products; and whole genome sequencing (WGS) on human samples for research projects, such as population sequencing initiatives, as well as offers sequencing and data analysis services to support population sequencing initiatives. Its customers include pharmaceutical companies, biopharmaceutical companies, diagnostics companies, universities, non-profits, government entities, and patients. The company was incorporated in 2011 and is headquartered in Fremont, California.

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.