Head to Head Review: CareDx (CDNA) & Iqvia (IQV)

CareDx (NASDAQ:CDNA) and Iqvia (NYSE:IQV) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares CareDx and Iqvia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareDx -61.06% -63.64% -33.85%
Iqvia 2.49% 14.25% 4.78%

Institutional & Insider Ownership

86.9% of CareDx shares are owned by institutional investors. Comparatively, 87.6% of Iqvia shares are owned by institutional investors. 3.4% of CareDx shares are owned by insiders. Comparatively, 6.0% of Iqvia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

CareDx has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Iqvia has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares CareDx and Iqvia’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CareDx $76.57 million 19.81 -$46.76 million ($1.31) -27.76
Iqvia $10.41 million 2,744.67 $259.00 million $5.12 28.21

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

Analyst Ratings

This is a summary of current recommendations for CareDx and Iqvia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareDx 0 1 3 1 3.00
Iqvia 0 2 12 2 3.00

CareDx currently has a consensus target price of $35.40, suggesting a potential downside of 2.64%. Iqvia has a consensus target price of $147.20, suggesting a potential upside of 1.90%. Given Iqvia’s higher possible upside, analysts clearly believe Iqvia is more favorable than CareDx.

Summary

Iqvia beats CareDx on 12 of the 14 factors compared between the two stocks.

About CareDx

CareDx, Inc., a transplant diagnostics company, together with its subsidiaries, focuses on the discovery, development, and commercialization of diagnostic solutions for transplant patients worldwide. The company develops and provides a diagnostic surveillance testing solution for heart and kidney transplant recipients. It offers AlloMap, a heart transplant molecular test; and AlloSure, a donor-derived cell-free DNA test initially used for kidney transplant patients. The company also develops, manufactures, markets, and sells products that increase the chance of successful transplants by facilitating a match between a donor and a recipient of stem cells and organs. It sells Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence-specific primer technology; Olerup SBT, a product range for sequence-based typing of HLA alleles; QTYPE that enables speed and precision in HLA typing at a low to intermediate resolution for samples that require a fast turn-around-time and uses real-time polymerase chain reaction methodology; and TruSight HLA, a high resolution solution that uses next generation sequencing methodology. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina for the development, commercialization, and distribution of next generation sequencing product line for use in transplantation diagnostic testing. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. CareDx, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.

About Iqvia

IQVIA Holdings Inc. provides advanced analytics, technology solutions, and contract research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation, real-world insights, and reference information services; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order to life science companies, and investment and financial sectors that deal with life science companies; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level to pharmaceutical sales organizations. The Research & Development Solutions segment offers biopharmaceutical development services comprising project management and clinical monitoring, clinical trial support, and strategic planning and design services, as well as clinical trial, genomic, and bioanalytical laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. IQVIA Holdings Inc. serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was founded in 1982 and is headquartered in Durham, North Carolina.

Receive News & Ratings for CareDx Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CareDx and related companies with MarketBeat.com's FREE daily email newsletter.