Natera (NASDAQ:NTRA) vs. Fractyl Health (NASDAQ:GUTS) Head to Head Survey
by Kim Johansen · The Markets DailyFractyl Health (NASDAQ:GUTS – Get Free Report) and Natera (NASDAQ:NTRA – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Earnings and Valuation
This table compares Fractyl Health and Natera”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fractyl Health | $90,000.00 | 858.86 | -$140.95 million | ($0.88) | -0.55 |
| Natera | $2.71 billion | 21.97 | -$208.16 million | ($1.36) | -303.35 |
Fractyl Health has higher earnings, but lower revenue than Natera. Natera is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Fractyl Health has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500. Comparatively, Natera has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.
Institutional and Insider Ownership
99.9% of Natera shares are held by institutional investors. 8.4% of Fractyl Health shares are held by insiders. Comparatively, 5.1% of Natera shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Fractyl Health and Natera, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
| Natera | 1 | 4 | 16 | 2 | 2.83 |
Fractyl Health presently has a consensus price target of $5.50, indicating a potential upside of 1,032.62%. Natera has a consensus price target of $336.07, indicating a potential downside of 18.54%. Given Fractyl Health’s higher probable upside, equities analysts clearly believe Fractyl Health is more favorable than Natera.
Profitability
This table compares Fractyl Health and Natera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fractyl Health | N/A | -1,362.10% | -84.89% |
| Natera | -7.11% | -11.38% | -7.87% |
Summary
Fractyl Health beats Natera on 8 of the 15 factors compared between the two stocks.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.