Head-To-Head Analysis: Community Health Systems (CYH) versus Cancer Genetics (CGIX)

Cancer Genetics (NASDAQ: CGIX) and Community Health Systems (NYSE:CYH) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Cancer Genetics and Community Health Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cancer Genetics -54.65% -51.22% -26.33%
Community Health Systems -3.97% -3.10% -0.22%

Earnings and Valuation

This table compares Cancer Genetics and Community Health Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cancer Genetics $27.05 million 2.16 -$15.80 million ($0.97) -3.04
Community Health Systems $18.44 billion 0.03 -$1.72 billion ($5.98) -0.73

Cancer Genetics has higher revenue, but lower earnings than Community Health Systems. Cancer Genetics is trading at a lower price-to-earnings ratio than Community Health Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cancer Genetics and Community Health Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cancer Genetics 0 1 2 0 2.67
Community Health Systems 3 10 0 0 1.77

Cancer Genetics currently has a consensus price target of $6.00, suggesting a potential upside of 103.39%. Community Health Systems has a consensus price target of $5.79, suggesting a potential upside of 32.23%. Given Cancer Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Cancer Genetics is more favorable than Community Health Systems.

Institutional & Insider Ownership

15.6% of Cancer Genetics shares are owned by institutional investors. Comparatively, 99.6% of Community Health Systems shares are owned by institutional investors. 21.3% of Cancer Genetics shares are owned by insiders. Comparatively, 4.7% of Community Health Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Cancer Genetics has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Summary

Cancer Genetics beats Community Health Systems on 7 of the 13 factors compared between the two stocks.

About Cancer Genetics

Cancer Genetics, Inc. is a United States-based company, which is engaged in the field of personalized medicine. The Company offers diagnostic products and services that enable precision medicine in the field of oncology through molecular markers and diagnostics. The Company offers a range of laboratory services that provide genomic and biomarker information. Its Select One Clinical Trials program provides a range of integrated and dynamic clinical trial services for both oncology and non-oncology genetic testing for Phase I-III trials along with ancillary services, including bioinformatics, biorepository and trials logistic support. The Company is developing a global footprint with locations in the United States, India and China. It also offers a portfolio of genotyping services, with access to over 400 validated genotyping assays, including Phase I and Phase II drug metabolizing enzymes, transporters, and receptors, and over 30 validated gene expression assays.

About Community Health Systems

Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.

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