Healthequity (NASDAQ: HQY) and Complete Genomics (NASDAQ:GNOM) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Healthequity and Complete Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Healthequity 21.08% 14.47% 13.72%
Complete Genomics N/A N/A N/A

Earnings and Valuation

This table compares Healthequity and Complete Genomics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Healthequity $178.37 million 16.60 $26.37 million $0.74 65.95
Complete Genomics N/A N/A N/A ($2.35) -1.34

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

Institutional and Insider Ownership

98.3% of Healthequity shares are held by institutional investors. 29.0% of Healthequity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Healthequity and Complete Genomics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthequity 0 1 8 0 2.89
Complete Genomics 0 0 0 0 N/A

Healthequity presently has a consensus target price of $58.00, suggesting a potential upside of 18.85%. Given Healthequity’s higher probable upside, research analysts clearly believe Healthequity is more favorable than Complete Genomics.

Summary

Healthequity beats Complete Genomics on 10 of the 10 factors compared between the two stocks.

About Healthequity

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

About Complete Genomics

Complete Genomics, Inc. is a life sciences company that has developed and commercialized a deoxyribonucleic acid (DNA) sequencing platform. Its complete genomics analysis platform (CGA) Platform, combines its human genome sequencing technology with its advanced informatics and data management software and its end-to-end, outsourced service model to provide its customers with data that is ready to be used for genome-based research. Its genome sequencing center combines a high-throughput sample preparation facility, a collection of its high-throughput sequencing instruments and a large- scale data center. Its customers include some of the global academic and government research centers and biopharmaceutical companies. Effective March 18, 2013, BGI-Shenzhen announced that through its wholly-owned subsidiary, Beta Acquisition Corporation, it has completed the acquisition of the Company.

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