HTG Molecular Diagnostics (NASDAQ: HTGM) and Varex Imaging (NASDAQ:VREX) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Analyst Ratings
This is a summary of recent ratings for HTG Molecular Diagnostics and Varex Imaging, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HTG Molecular Diagnostics | 0 | 1 | 2 | 0 | 2.67 |
| Varex Imaging | 0 | 1 | 1 | 0 | 2.50 |
HTG Molecular Diagnostics currently has a consensus target price of $6.17, suggesting a potential upside of 224.56%. Varex Imaging has a consensus target price of $33.50, suggesting a potential upside of 14.53%. Given HTG Molecular Diagnostics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe HTG Molecular Diagnostics is more favorable than Varex Imaging.
Profitability
This table compares HTG Molecular Diagnostics and Varex Imaging’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HTG Molecular Diagnostics | -432.74% | -1,538.49% | -131.17% |
| Varex Imaging | N/A | N/A | N/A |
Institutional and Insider Ownership
26.3% of HTG Molecular Diagnostics shares are held by institutional investors. Comparatively, 91.4% of Varex Imaging shares are held by institutional investors. 7.6% of HTG Molecular Diagnostics 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.
Valuation & Earnings
This table compares HTG Molecular Diagnostics and Varex Imaging’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| HTG Molecular Diagnostics | $5.50 million | 3.95 | -$20.91 million | ($3.01) | -0.63 |
| Varex Imaging | $654.50 million | 1.68 | $115.80 million | N/A | N/A |
Varex Imaging has higher revenue and earnings than HTG Molecular Diagnostics.
Summary
Varex Imaging beats HTG Molecular Diagnostics on 6 of the 11 factors compared between the two stocks.
HTG Molecular Diagnostics Company Profile
HTG Molecular Diagnostics, Inc. is a commercial-stage company that develops and markets a technology platform to facilitate the routine use of complex molecular profiling. The Company’s HTG Edge and HTG EdgeSeq platforms, consisting of instrumentation, consumables and software analytics, are used in sample profiling applications, including tumor profiling, molecular diagnostic testing and biomarker development. The Company’s HTG Edge and HTG EdgeSeq platforms automate the molecular profiling of genes and gene activity using its nuclease protection chemistry on a range of biological samples. The Company’s HTG EdgeSeq chemistry, together with its HTG Edge or HTG EdgeSeq instrumentation and software, automates and adapts its nuclease protection chemistry to enable analysis using next generation sequencing (NGS) instrumentation. The HTG EdgeSeq system utilizes substantially the same sample preparation reagents as its original chemistry, but allows for read out on an NGS instrument.
Varex Imaging Company Profile
Varex Imaging Corporation is a supplier of medical X-ray tubes and image processing solutions. The Company’s segments include Medical and Industrial. The X-ray imaging system manufacturers use the Company’s components for medical imaging, cargo screening and border security, to detect, diagnose and protect. The Medical business segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, radiation therapy and computer-aided detection. The Industrial business segment designs, manufactures, sells and services products for use in security and industrial inspection applications, such as cargo screening at ports and borders and non-destructive examination in a range of applications.
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