Reviewing Geron (NASDAQ:GERN) and MDxHealth (NASDAQ:MDXH)
by Mitch Edgeman · The Markets DailyGeron (NASDAQ:GERN – Get Free Report) and MDxHealth (NASDAQ:MDXH – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares Geron and MDxHealth”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geron | $204.56 million | 2.92 | -$83.50 million | ($0.11) | -8.45 |
| MDxHealth | $114.02 million | 0.07 | -$33.52 million | ($0.72) | -0.22 |
MDxHealth has lower revenue, but higher earnings than Geron. Geron is trading at a lower price-to-earnings ratio than MDxHealth, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Geron and MDxHealth, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geron | 1 | 2 | 3 | 0 | 2.33 |
| MDxHealth | 1 | 4 | 1 | 0 | 2.00 |
Geron currently has a consensus target price of $3.75, indicating a potential upside of 303.23%. MDxHealth has a consensus target price of $1.33, indicating a potential upside of 741.75%. Given MDxHealth’s higher probable upside, analysts plainly believe MDxHealth is more favorable than Geron.
Insider and Institutional Ownership
73.7% of Geron shares are held by institutional investors. 1.7% of Geron shares are held by insiders. Comparatively, 1.7% of MDxHealth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Geron has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, MDxHealth has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Profitability
This table compares Geron and MDxHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geron | -34.17% | -24.48% | -10.30% |
| MDxHealth | -33.46% | N/A | -24.25% |
Summary
Geron beats MDxHealth on 8 of the 14 factors compared between the two stocks.
About Geron
Geron Corporation, a late-stage clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for myeloid hematologic malignancies. It develops imetelstat, a telomerase inhibitor that is in Phase 3 clinical trials, which inhibits the uncontrolled proliferation of malignant stem and progenitor cells in myeloid hematologic malignancies for the treatment of low or intermediate-1 risk myelodysplastic syndromes and intermediate-2 or high-risk myelofibrosis. The company was incorporated in 1990 and is headquartered in Foster City, California.
About MDxHealth
MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, Europe, and internationally. Its testing solutions includes Select mdx, a non-invasive urine test for prostate cancer that measures the expression of two mRNA cancer-related biomarkers; Confirm mdx for prostate cancer tissue test that validates epigenetic test that guides the detection of occult prostate cancer on a patient's previously biopsied negative tissue; and Resolved mdx for urinary tract infection that identifies personalized effective antibiotic options against the patient's infection. The company offers genomic prostate score which provides personalized genomic insights to both physicians and patients navigating the complexities of prostate cancer diagnosis and treatment. It sells its products through urology sales force, consisting of direct sales representatives, strategic account managers, and regional sales managers. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.