Critical Survey: Natera (NTRA) & Its Rivals

Natera (NASDAQ: NTRA) is one of 21 public companies in the “Medical laboratories” industry, but how does it contrast to its rivals? We will compare Natera to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Earnings & Valuation

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This table compares Natera and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Natera $210.94 million -$136.31 million -3.67
Natera Competitors $1.13 billion $77.59 million 202.61

Natera’s rivals have higher revenue and earnings than Natera. Natera is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Natera has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Natera’s rivals have a beta of 1.24, suggesting that their average share price is 24% more volatile than the S&P 500.

Profitability

This table compares Natera and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natera -64.61% -357.12% -71.89%
Natera Competitors -110.24% -188.04% -38.52%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Natera and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natera 0 0 4 0 3.00
Natera Competitors 107 449 528 17 2.41

Natera presently has a consensus price target of $14.33, indicating a potential upside of 62.88%. As a group, “Medical laboratories” companies have a potential upside of 18.79%. Given Natera’s stronger consensus rating and higher probable upside, analysts clearly believe Natera is more favorable than its rivals.

Institutional and Insider Ownership

67.1% of Natera shares are held by institutional investors. Comparatively, 53.0% of shares of all “Medical laboratories” companies are held by institutional investors. 12.6% of Natera shares are held by company insiders. Comparatively, 16.8% of shares of all “Medical laboratories” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Natera rivals beat Natera on 7 of the 13 factors compared.

About Natera

Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. It primarily offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus typically with a blood draw from the mother; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases that could be passed on to the carrier's children; and Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora Products of Conception test to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother's blood and a blood sample from the alleged father. In addition, it offers Constellation, a cloud-based software product that allows laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics in order to validate and launch tests. The company offers products through its direct sales force, as well as through a network of approximately 70 laboratory and distribution partners in the United States and internationally. The company was formerly known as Gene Security Network, Inc. and changed its name to Natera, Inc. in 2012. Natera, Inc. was founded in 2003 and is headquartered in San Carlos, California.

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