CareDx (NASDAQ:CDNA) vs. Upstream Bio (NASDAQ:UPB) Head-To-Head Review
by Kim Johansen · The Markets DailyCareDx (NASDAQ:CDNA – Get Free Report) and Upstream Bio (NASDAQ:UPB – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility and Risk
CareDx has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Upstream Bio has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Profitability
This table compares CareDx and Upstream Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareDx | 25.86% | 9.74% | 7.35% |
| Upstream Bio | -4,955.67% | -48.40% | -46.57% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for CareDx and Upstream Bio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareDx | 0 | 4 | 3 | 1 | 2.62 |
| Upstream Bio | 1 | 2 | 4 | 0 | 2.43 |
CareDx presently has a consensus price target of $64.40, suggesting a potential downside of 20.56%. Upstream Bio has a consensus price target of $29.67, suggesting a potential upside of 800.90%. Given Upstream Bio’s higher probable upside, analysts plainly believe Upstream Bio is more favorable than CareDx.
Valuation and Earnings
This table compares CareDx and Upstream Bio”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareDx | $379.80 million | 11.21 | -$21.35 million | $2.39 | 33.92 |
| Upstream Bio | $2.85 million | 63.28 | -$143.44 million | ($2.90) | -1.14 |
CareDx has higher revenue and earnings than Upstream Bio. Upstream Bio is trading at a lower price-to-earnings ratio than CareDx, indicating that it is currently the more affordable of the two stocks.
Summary
CareDx beats Upstream Bio on 10 of the 13 factors compared between the two stocks.
About CareDx
CareDx, Inc. is a precision medicine company focused on organ transplantation. It develops and provides diagnostic tests and related services to help clinicians assess transplant recipients and monitor their health over time. Its offerings include AlloSure, a donor-derived cell-free DNA test used to help monitor for organ rejection, and AlloMap, a gene-expression test used in heart transplant care. CareDx also provides histocompatibility testing, clinical tools, and services designed to support patients and transplant care teams.
About Upstream Bio
Upstream Bio, Inc. is a clinical-stage biotechnology company focused on developing therapies for inflammatory and immune-mediated diseases. The company’s research is centered on targeting pathways involved in type 2 inflammation, which contributes to conditions affecting the respiratory system and other tissues. Its lead product candidate is verekitug, an investigational, long-acting monoclonal antibody designed to block thymic stromal lymphopoietin (TSLP), an epithelial cytokine that plays a role in initiating and maintaining allergic and inflammatory responses.