Contrasting CochLear (OTCMKTS:CHEOY) and CareDx (NASDAQ:CDNA)
by Tristan Rich · The Markets DailyCochLear (OTCMKTS:CHEOY – Get Free Report) and CareDx (NASDAQ:CDNA – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Volatility and Risk
CochLear has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, CareDx has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500.
Earnings and Valuation
This table compares CochLear and CareDx”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CochLear | $1.53 billion | 7.43 | $251.85 million | N/A | N/A |
| CareDx | $333.79 million | 2.90 | $52.55 million | $1.19 | 15.83 |
CochLear has higher revenue and earnings than CareDx.
Analyst Recommendations
This is a summary of current ratings for CochLear and CareDx, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CochLear | 0 | 3 | 0 | 2 | 2.80 |
| CareDx | 0 | 5 | 4 | 0 | 2.44 |
CareDx has a consensus price target of $26.67, indicating a potential upside of 41.54%. Given CareDx’s higher possible upside, analysts clearly believe CareDx is more favorable than CochLear.
Profitability
This table compares CochLear and CareDx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CochLear | N/A | N/A | N/A |
| CareDx | 19.65% | 20.15% | 15.15% |
Summary
CareDx beats CochLear on 6 of the 11 factors compared between the two stocks.
About CochLear
Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.
About CareDx
CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.