Reviewing Elekta (EKTAY) and Invitae (NVTA)

Elekta (OTCMKTS: EKTAY) and Invitae (NYSE:NVTA) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

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This table compares Elekta and Invitae’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elekta 5.79% 9.72% 3.23%
Invitae -180.85% -124.43% -68.92%

Dividends

Elekta pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Invitae does not pay a dividend. Elekta pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

0.0% of Elekta shares are held by institutional investors. Comparatively, 70.8% of Invitae shares are held by institutional investors. 9.9% of Invitae shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Elekta has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Invitae has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Elekta and Invitae’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elekta $1.23 billion 3.21 $14.30 million $0.04 266.75
Invitae $68.22 million 4.34 -$123.38 million ($2.65) -2.11

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Elekta and Invitae, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elekta 0 1 0 0 2.00
Invitae 0 0 4 0 3.00

Invitae has a consensus price target of $11.00, indicating a potential upside of 96.78%. Given Invitae’s stronger consensus rating and higher possible upside, analysts plainly believe Invitae is more favorable than Elekta.

Elekta Company Profile

Elekta AB (publ) develops and sells clinical solutions for the treatment of cancer and brain disorders worldwide. The company offers Leksell Gamma Knife, a system for cranial stereotactic radiosurgery; the Extend system for utilization of Leksell Gamma Knife Perfexion; and Leksell Stereotactic System for neurosurgery and biopsies. Its neuroscience solutions comprise Gamma Knife radiosurgery for the treatment of brain disorders; stereotactic neurosurgery; and surgical navigation accessories, as well as Elekta Neuromag TRIUX, a magnetoencephalography platform. The company also provides oncology treatment solutions, such as Precise Treatment System, a digital treatment system; Elekta Axesse, a stereotactic radiation therapy system; Elekta Compact, a gateway to RT for oncology centers; Elekta Synergy system that visualizes tumor targets and normal tissue, and their movement between and during fractions; treatment planning systems; oncology information systems solutions; Versa HD, a linear accelerator; and Elekta Infinity system for volumetric arc modulated therapy, as well as various treatment techniques. In addition, it offers brachytherapy solutions that include afterloading platforms; real-time prostate solutions; Oncentra Brachy, a radiotherapy treatment planning system; Esteya for treating skin cancer; and applicators. Further, the company provides software products, including MOSAIQ oncology information system; Oncology Informatics/Data Alliances that streamlines the flow of information in the cancer care team; medical oncology software; Clarity Soft Tissue Visualization, a software for radiation therapy; Monaco, a treatment planning system; Venezia, an applicator for treating gynecological cancer; and METRIQ, a cancer registry data solution. It also offers installation, implementation, training, education, and consultative services. It primarily serves hospitals and academic institutions. The company was founded in 1972 and is headquartered in Stockholm, Sweden.

Invitae Company Profile

Invitae Corporation, a genetic information company, processes DNA-containing samples, analyzes information related to patient-specific genetic variation, and generates test reports for clinicians and their patients in the United States, Canada, and internationally. The company's tests include multiple genes associated with hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders, metabolic disorders, and other hereditary conditions; proactive health and wellness screening; and preimplantation embryo testing and carrier screening for inherited disorders, prenatal diagnosis, miscarriage analysis, and pediatric developmental disorders. It also operates Patient Insights Networks, a platform for collecting, curating, coordinating, and delivering data from patients and clinicians; and CancerGene Connect, an end-to-end platform that is used for the collection, analysis, and management of patient family history information. Invitae Corporation serves patients, healthcare providers, and biopharma and advocacy partners. The company was formerly known as Locus Development, Inc. and changed its name to Invitae Corporation in 2012. Invitae Corporation was founded in 2010 and is headquartered in San Francisco, California.

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