PharmChem (OTCMKTS:PCHM) and DermTech (NASDAQ:DMTK) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
51.4% of DermTech shares are owned by institutional investors. 17.4% of PharmChem shares are owned by company insiders. Comparatively, 16.5% of DermTech shares are owned by company 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.
Risk and Volatility
PharmChem has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, DermTech has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for PharmChem and DermTech, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DermTech has a consensus price target of $50.25, suggesting a potential downside of 32.09%. Given DermTech’s higher probable upside, analysts clearly believe DermTech is more favorable than PharmChem.
Earnings and Valuation
This table compares PharmChem and DermTech’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DermTech||$3.36 million||431.50||-$19.69 million||($2.81)||-26.33|
PharmChem has higher earnings, but lower revenue than DermTech.
This table compares PharmChem and DermTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
DermTech beats PharmChem on 5 of the 9 factors compared between the two stocks.
PharmChem, Inc. provides PharmChek Sweat Patch that is used to detect drugs of abuse. Its PharmChek Sweat Patch uses sweat as the source and offers alternative to urine testing for cocaine, opiates, amphetamines, PCP, and marijuana. The company is based in Fort Worth, Texas.
DermTech, Inc., a molecular diagnostic company, develops and markets novel non-invasive diagnostic tests to diagnosis skin cancer and related conditions in the United States. The company offers Pigmented Lesion Assay (PLA), a gene expression test that helps rule out melanoma and the need for a surgical biopsy of atypical pigmented lesions. It also provides Nevome test, an adjunctive reflex test for the PLA; and adhesive skin sample collection kits, as well as gene expression assays for the Th1, Th2, IFN-gamma, and Th17 inflammatory pathways. The company is also developing non-melanoma skin cancer diagnostic and non-melanoma skin cancer risk assessment products. The company sells its products primarily to pathology and oncology practitioners. DermTech, Inc. is headquartered in La Jolla, California.
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