First Choice Healthcare Solutions (NASDAQ: FMI) and Foundation Medicine (NASDAQ:FMI) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares First Choice Healthcare Solutions and Foundation Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Choice Healthcare Solutions -12.79% -25.35% -15.86%
Foundation Medicine -84.96% -299.63% -94.81%

Analyst Ratings

This is a summary of current ratings and recommmendations for First Choice Healthcare Solutions and Foundation Medicine, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Choice Healthcare Solutions 0 1 2 0 2.67
Foundation Medicine 0 3 1 0 2.25

First Choice Healthcare Solutions currently has a consensus price target of $2.50, indicating a potential upside of 111.86%. Foundation Medicine has a consensus price target of $81.00, indicating a potential downside of 40.88%. Given First Choice Healthcare Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe First Choice Healthcare Solutions is more favorable than Foundation Medicine.

Volatility & Risk

First Choice Healthcare Solutions has a beta of -0.53, suggesting that its stock price is 153% less volatile than the S&P 500. Comparatively, Foundation Medicine has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Choice Healthcare Solutions and Foundation Medicine’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Choice Healthcare Solutions $28.74 million 1.34 -$3.88 million ($0.15) -7.87
Foundation Medicine $152.90 million 33.28 -$161.46 million ($4.50) -30.44

First Choice Healthcare Solutions has higher earnings, but lower revenue than Foundation Medicine. Foundation Medicine 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.

Institutional and Insider Ownership

0.1% of First Choice Healthcare Solutions shares are held by institutional investors. Comparatively, 33.2% of Foundation Medicine shares are held by institutional investors. 30.8% of First Choice Healthcare Solutions shares are held by insiders. Comparatively, 3.0% of Foundation Medicine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

First Choice Healthcare Solutions beats Foundation Medicine on 10 of the 14 factors compared between the two stocks.

About First Choice Healthcare Solutions

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.

About Foundation Medicine

Foundation Medicine, Inc. provides various molecular information products in the United States. The company's molecular information platform includes proprietary methods and algorithms to analyze specimens across various types of cancer, as well as for incorporating that information into clinical care; and offers genomic insights about each patient's individual cancer, enabling physicians to optimize treatments in clinical practice and biopharmaceutical companies to develop targeted therapies and immunotherapies. It provides clinical products, such as FoundationOne for solid tumors; FoundationOne Heme for blood-based cancers, or hematologic malignancies, including leukemia, lymphoma, and sarcomas; Foundation Assay for Circulating Tumor; FoundationFocus CDxBRCA, a diagnostic assay to aid in identifying women with ovarian cancer; and FoundationOne CDx, a diagnostic assay for solid tumors. The company also offers FoundationCORE, a knowledgebase to publish scientific and medical advances, and foster relationships throughout the oncology community. In addition, it has strategic collaboration agreements with F. Hoffmann-La Roche Ltd.; and Genentech, Inc. Foundation Medicine, Inc. has a collaboration with The European Organisation for Research and Treatment of Cancer to advance precision medicine using comprehensive genomic profiling to facilitate clinical trial enrollment. It also has a three-party collaboration agreement with F. Hoffmann-La Roche Ltd and DIAN Diagnostics Group, Co., Ltd. to integrate the company's comprehensive genomic profiling assays into clinical patient care in mainland China. The company was founded in 2009 and is headquartered in Cambridge, Massachusetts. Foundation Medicine, Inc. is a subsidiary of Roche Holdings, Inc.

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