Veracyte (OTCMKTS: FCHS) and First Choice Healthcare Solutions (OTCMKTS:FCHS) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
This is a summary of recent recommendations for Veracyte and First Choice Healthcare Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Choice Healthcare Solutions||0||1||2||0||2.67|
Veracyte currently has a consensus target price of $11.00, suggesting a potential downside of 10.42%. First Choice Healthcare Solutions has a consensus target price of $2.50, suggesting a potential upside of 121.24%. Given First Choice Healthcare Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe First Choice Healthcare Solutions is more favorable than Veracyte.
This table compares Veracyte and First Choice Healthcare Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Choice Healthcare Solutions||-10.47%||-22.75%||-12.84%|
Risk and Volatility
Veracyte has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, First Choice Healthcare Solutions has a beta of -0.53, indicating that its share price is 153% less volatile than the S&P 500.
Valuation & Earnings
This table compares Veracyte and First Choice Healthcare Solutions’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veracyte||$71.95 million||5.89||-$31.00 million||($0.91)||-13.49|
|First Choice Healthcare Solutions||$28.74 million||1.28||-$3.88 million||($0.15)||-7.53|
First Choice Healthcare Solutions has lower revenue, but higher earnings than Veracyte. Veracyte is trading at a lower price-to-earnings ratio than First Choice Healthcare Solutions, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
71.5% of Veracyte shares are held by institutional investors. Comparatively, 0.1% of First Choice Healthcare Solutions shares are held by institutional investors. 13.7% of Veracyte shares are held by insiders. Comparatively, 30.8% of First Choice Healthcare Solutions shares are held by 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.
First Choice Healthcare Solutions beats Veracyte on 9 of the 13 factors compared between the two stocks.
Veracyte Company Profile
Veracyte, Inc. operates as a genomic diagnostics company in the United States. The company uses genomic technology to resolve diagnostic uncertainty. It offers Afirma Thyroid FNA Analysis solution; cytopathology testing services; and the Afirma Malignancy Classifiers to manage thyroid nodule patients. The company's products also include Percepta Bronchial Genomic Classifier solution for use in lung cancer screening and diagnosis; and Envisia Genomic Classifier solution for idiopathic pulmonary fibrosis. Veracyte, Inc. sells its products through product specialists, institutional managers, account managers, and medical science specialists. Veracyte, Inc. has research collaboration agreement with Loxo Oncology to develop medicines for patients with genetically defined cancers. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.
First Choice Healthcare Solutions Company Profile
First Choice Healthcare Solutions, Inc., through its subsidiaries, provides healthcare services in the United States. Its network of non-physician-owned medical centers offer musculoskeletal and rehabilitative care services specializing in orthopaedics, spine surgery, interventional pain management, and ambulatory surgical care. The company also provides ancillary and diagnostic services comprising magnetic resonance imaging, X-ray, durable medical equipment, and physical/occupational therapy. In addition, it subleases 29,629 square feet of commercial office space to affiliated and nonaffiliated tenants. The company is headquartered in Melbourne, Florida.
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