Critical Review: Fulgent Genetics (FLGT) & Miragen Therapeutics (MGEN)

Fulgent Genetics (NASDAQ: FLGT) and Miragen Therapeutics (NASDAQ:MGEN) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Fulgent Genetics has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Miragen Therapeutics has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

8.1% of Fulgent Genetics shares are owned by institutional investors. Comparatively, 36.7% of Miragen Therapeutics shares are owned by institutional investors. 58.8% of Fulgent Genetics shares are owned by insiders. Comparatively, 18.9% of Miragen Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Fulgent Genetics and Miragen Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fulgent Genetics 0 1 1 0 2.50
Miragen Therapeutics 0 1 8 0 2.89

Fulgent Genetics currently has a consensus price target of $6.00, indicating a potential upside of 43.88%. Miragen Therapeutics has a consensus price target of $17.19, indicating a potential upside of 168.55%. Given Miragen Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Miragen Therapeutics is more favorable than Fulgent Genetics.

Profitability

This table compares Fulgent Genetics and Miragen Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fulgent Genetics -26.57% -7.62% -7.22%
Miragen Therapeutics -290.61% -50.53% -40.91%

Valuation & Earnings

This table compares Fulgent Genetics and Miragen Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fulgent Genetics $18.73 million 3.98 -$2.51 million ($0.11) -37.91
Miragen Therapeutics $4.00 million 48.30 -$26.51 million ($1.38) -4.64

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

Fulgent Genetics Company Profile

Fulgent Genetics, Inc., together with its subsidiaries, provides genetic testing services to physicians with clinically actionable diagnostic information. Its technology platform integrates data comparison and suppression algorithms, learning software, and genetic diagnostics tools and integrated laboratory processes. The company primarily serves hospitals and medical institutions. It markets its tests through internal sales force, as well as through independent sales representatives in the United States, Canada, the People's Republic of China, and internationally. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in Temple City, California.

Miragen Therapeutics Company Profile

Miragen Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in discovering and developing proprietary RNA-targeted therapies with a specific focus on microRNAs and their role in diseases where there is a high unmet medical need. Its three lead product candidates include cobomarsen, an inhibitor of microRNA-155, which is in Phase I clinical trial for treating cutaneous T-cell lymphoma; MRG-201, a replacement for microRNA-29, which is in Phase I clinical trial that is found at low levels in various pathological fibrotic conditions, including cutaneous, cardiac, renal, hepatic, and pulmonary fibrosis, as well as systemic sclerosis; and MRG-110, an inhibitor of microRNA-92 that is expressed in endothelial cells and has shown to accelerate the formation of new blood vessels in preclinical models of heart failure, peripheral ischemia, and dermal wounding in the United States and Japan. The company also develops MRG-107, an inhibitor of miR-155 for treating neuronal amyotrophic lateral sclerosis, and other neurodegenerative indications, including spinal cord injury. It also develops preclinical product candidates for treating various indications, including oncology, visual pathologies, neurodegeneration, and hearing loss. Miragen Therapeutics, Inc. has a collaboration agreement with Les Laboratoires Servier and Institut de Recherches Servier for the development of MRG-110. The company was founded in 2006 and is based in Boulder, Colorado.

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