NeoGenomics (NEO) versus Intertek Group (IKTSY) Critical Analysis

NeoGenomics (NASDAQ: NEO) and Intertek Group (OTCMKTS:IKTSY) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider & Institutional Ownership

84.6% of NeoGenomics shares are held by institutional investors. Comparatively, 0.0% of Intertek Group shares are held by institutional investors. 11.2% of NeoGenomics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares NeoGenomics and Intertek Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeoGenomics $258.61 million 2.89 -$840,000.00 $0.06 154.83
Intertek Group $3.57 billion 3.19 $370.40 million $2.47 28.51

Intertek Group has higher revenue and earnings than NeoGenomics. Intertek Group is trading at a lower price-to-earnings ratio than NeoGenomics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NeoGenomics and Intertek Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoGenomics -1.37% 4.34% 2.15%
Intertek Group N/A N/A N/A

Risk & Volatility

NeoGenomics has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Intertek Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Dividends

Intertek Group pays an annual dividend of $0.78 per share and has a dividend yield of 1.1%. NeoGenomics does not pay a dividend. Intertek Group pays out 31.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for NeoGenomics and Intertek Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoGenomics 0 1 6 0 2.86
Intertek Group 0 1 0 0 2.00

NeoGenomics presently has a consensus price target of $17.29, indicating a potential upside of 86.07%. Given NeoGenomics’ stronger consensus rating and higher probable upside, analysts clearly believe NeoGenomics is more favorable than Intertek Group.

Summary

NeoGenomics beats Intertek Group on 9 of the 16 factors compared between the two stocks.

About NeoGenomics

NeoGenomics, Inc., together with its subsidiaries, operates a network of cancer-focused genetic testing laboratories in the United States. It operates through Clinical Services and Pharma Services segments. The company laboratories provide genetic and molecular testing services to hospitals, pathologists, oncologists, urologists, other clinicians and researchers, pharmaceutical firms, and other clinical laboratories. It offers cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; immunohistochemistry and digital imaging testing services to localize proteins in cells of a tissue section, as well as to allow clients to see and utilize scanned slides, and perform quantitative analysis for various stains; and molecular testing services that focus on the analysis of DNA and RNA, and the structure and function of genes at the molecular level. The company also provides pathology consultation services for clients in which its pathologists review surgical samples on a consultative basis; and testing services in support of its pharmaceutical clients' oncology programs, as well as acts as a reference laboratory supplying anatomic pathology testing services. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.

About Intertek Group

Intertek Group Plc provides quality and safety solutions to various industries worldwide. It operates in three segments: Products, Trade, and Resources. The Products segment offers assurance, testing, and inspection and certification services (ATIC), including laboratory safety, quality and performance testing, second-party supplier auditing, sustainability analysis, products assurance, vendor compliance, process performance analysis, facility plant and equipment verification, and third party certification services. This segment serves a range of industries including textiles, footwear, toys, hard lines, home appliances, consumer electronics, information and communication technology, automotive, aerospace, lighting, building products, industrial and renewable energy products, food and hospitality, healthcare and beauty, and pharmaceuticals. The Trade segment provides cargo inspection, analytical assessment, calibration, and related research and technical services to the petroleum and biofuels industries; inspection services to governments and regulatory bodies to support trade activities; and analytical and testing services to agricultural trading companies and growers. The Resources segment offers technical inspection, asset integrity management, analytical testing, and ongoing training services for oil, gas, nuclear, and power industries. This segment also provides a range of ATIC solutions to the mining and minerals exploration industries covering the resource supply chain. The company also offers cyber security services for products, equipment, and networks across various industries. Intertek Group Plc was founded in 1885 and is based in London, the United Kingdom.

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