Head to Head Review: Oncocyte (NASDAQ:IMDX) and Precision BioSciences (NASDAQ:DTIL)
by Danessa Lincoln · The Markets DailyOncocyte (NASDAQ:IMDX – Get Free Report) and Precision BioSciences (NASDAQ:DTIL – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Analyst Recommendations
This is a summary of recent recommendations for Oncocyte and Precision BioSciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oncocyte | 1 | 0 | 2 | 0 | 2.33 |
| Precision BioSciences | 1 | 0 | 4 | 0 | 2.60 |
Oncocyte currently has a consensus target price of $10.50, suggesting a potential upside of 167.86%. Precision BioSciences has a consensus target price of $32.25, suggesting a potential upside of 418.49%. Given Precision BioSciences’ stronger consensus rating and higher possible upside, analysts plainly believe Precision BioSciences is more favorable than Oncocyte.
Institutional and Insider Ownership
55.3% of Oncocyte shares are owned by institutional investors. Comparatively, 38.0% of Precision BioSciences shares are owned by institutional investors. 2.2% of Oncocyte shares are owned by company insiders. Comparatively, 2.7% of Precision BioSciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Oncocyte and Precision BioSciences”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oncocyte | $4.05 million | 31.67 | -$50.22 million | ($1.49) | -2.63 |
| Precision BioSciences | $34.26 million | 5.01 | -$45.72 million | ($2.80) | -2.22 |
Precision BioSciences has higher revenue and earnings than Oncocyte. Oncocyte is trading at a lower price-to-earnings ratio than Precision BioSciences, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Oncocyte and Precision BioSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oncocyte | -2,955.63% | N/A | -107.52% |
| Precision BioSciences | -96.73% | -72.52% | -32.25% |
Risk and Volatility
Oncocyte has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Precision BioSciences has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Summary
Precision BioSciences beats Oncocyte on 9 of the 14 factors compared between the two stocks.
About Oncocyte
OncoCyte Corporation, a molecular diagnostics company, researches, develops, and commercializes proprietary laboratory-developed tests for the detection of cancer in the United States and internationally. The company offers DetermaRx, a molecular test for early-stage adenocarcinoma of the lung; and DetermaIO, a proprietary gene expression assay. It also provides biomarker discovery testing, assay design and development, and clinical trial support services, as well as various biomarker tests for pharmaceutical companies. The company has a collaboration agreement with Life Technologies Corporation to develop and collaborate in the commercialization of Oncomine Comprehensive Assay Plus and Determa IO assay for use with Ion Torrent Genexus integrated sequencer and purification system. OncoCyte Corporation was incorporated in 2009 and is based in Irvine, California.
About Precision BioSciences
Precision BioSciences, Inc., an advanced gene editing company, develops in vivo gene editing therapies for gene edits, including gene elimination, insertion, and excision in the United States. The company offers ARCUS, a genome editing platform to DNA genome insertion, deletion, and repair. It also provides PBGENE-HBV for the treatment of chronic hepatitis B virus (HBV) to eliminate covalently closed circular DNA with direct cuts and edits as well as to inactivate integrated HBV DNA with the goal of long-lasting reductions in hepatitis B surface antigen; PBGENE-PMM for the treatment of m.3243 associated primary mitochondrial myopathy (PMM) which is expected to submit an IND and/or CTA. In addition, it develops PBGENE-NVS for sickle cell disease/beta thalassemia for insertion; PBGENE-DMD (excision) for duchenne muscular dystrophy; PBGENE-LL2 (insertion), a liver directed target; PBGENE-LL3, a central nervous system directed target; and iECURE-OTC (insertion) for ornithine transcarbamylase deficiency. The company has license and collaboration agreement with Caribou Biosciences, Inc.; license agreement with TG Cell Therapy, Inc. to develop, manufacture, and commercialize azer-cel for autoimmune diseases and other indications outside of cancer; development and license agreement with Eli Lilly and Company for the research and development of potential in vivo therapies for genetic disorders; Cellectis S.A.; iECURE, Inc. to develop ARCUS-based gene-insertion therapies; Duke University; and Novartis Pharma AG to discover and develop in vivo gene editing products. Precision BioSciences, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina.