Contrasting Cancer Genetics (CGIX) and Universal Health Services (UHS)

Cancer Genetics (NASDAQ: CGIX) and Universal Health Services (NYSE:UHS) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

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This is a breakdown of recent recommendations for Cancer Genetics and Universal Health Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cancer Genetics 0 2 2 0 2.50
Universal Health Services 0 3 11 0 2.79

Cancer Genetics presently has a consensus target price of $6.00, indicating a potential upside of 400.00%. Universal Health Services has a consensus target price of $133.29, indicating a potential upside of 12.48%. Given Cancer Genetics’ higher possible upside, equities research analysts clearly believe Cancer Genetics is more favorable than Universal Health Services.

Dividends

Universal Health Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Cancer Genetics does not pay a dividend. Universal Health Services pays out 5.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Cancer Genetics and Universal Health Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cancer Genetics $29.12 million 1.14 -$15.80 million ($0.79) -1.52
Universal Health Services $10.41 billion 1.07 $752.30 million $7.53 15.74

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

Volatility & Risk

Cancer Genetics has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Universal Health Services has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

18.0% of Cancer Genetics shares are owned by institutional investors. Comparatively, 88.2% of Universal Health Services shares are owned by institutional investors. 21.3% of Cancer Genetics shares are owned by company insiders. Comparatively, 13.2% of Universal Health Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Cancer Genetics -54.65% -46.21% -24.62%
Universal Health Services 7.23% 15.06% 6.98%

Summary

Universal Health Services beats Cancer Genetics on 11 of the 16 factors compared between the two stocks.

Cancer Genetics Company Profile

Cancer Genetics, Inc. develops, commercializes, and provides molecular and biomarker-based tests and services in the United States, India, and China. Its tests enable physicians to personalize the clinical management of each individual patient by providing genomic information to diagnose, monitor, and inform cancer treatment; and enable biotech and pharmaceutical companies involved in oncology trials to select candidate populations and reduce adverse drug reactions by providing information regarding genomic factors influencing subject responses to therapeutics. The company's clinical services provide information on diagnosis, prognosis, and predicting treatment outcomes of cancers to guide patient management. Its biopharma services offer companies with customized solutions for patient stratification and treatment selection through a suite of molecular- and biomarker-based testing services, customized assay development, and trial design consultation. The company's discovery services provide the tools and testing methods for companies and researchers to identify new molecular-based biomarkers for disease. It serves hospitals, cancer centers, clinics, academic institutions, and government-sponsored research institutions, as well as pharmaceutical and biotech companies performing clinical trials. The company collaborates with oncology centers and community-based hospitals to develop its proprietary diagnostic tests. Cancer Genetics, Inc. was founded in 1999 and is based in Rutherford, New Jersey.

Universal Health Services Company Profile

Universal Health Services, Inc. is a holding company. The Company’s principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company’s segments include Acute Care Hospital Services, Behavioral Health Services and Other. As of February 28, 2017, the Company owned and/or operated 319 inpatient facilities, and 33 outpatient and other facilities, located in 37 states, Washington, District of Columbia, the United Kingdom, Puerto Rico and the United States Virgin Islands. The Company’s hospitals provide a range of services, such as oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. As of February 28, 2017, its acute care facilities located in the United States included 26 inpatient acute care hospitals; four free-standing emergency departments, and four outpatient surgery/cancer care centers and one surgical hospital.

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