Fulgent Genetics (NASDAQ:FLGT – Get Free Report) and Surgery Partners (NASDAQ:SGRY – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Profitability
This table compares Fulgent Genetics and Surgery Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fulgent Genetics | -26.05% | -4.93% | -4.50% |
| Surgery Partners | -2.63% | 0.88% | 0.34% |
Insider and Institutional Ownership
48.1% of Fulgent Genetics shares are owned by institutional investors. 36.2% of Fulgent Genetics shares are owned by insiders. Comparatively, 2.0% of Surgery Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fulgent Genetics | 1 | 2 | 1 | 0 | 2.00 |
| Surgery Partners | 1 | 3 | 7 | 0 | 2.55 |
Fulgent Genetics presently has a consensus price target of $27.50, suggesting a potential upside of 23.87%. Surgery Partners has a consensus price target of $19.00, suggesting a potential upside of 31.94%. Given Surgery Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Surgery Partners is more favorable than Fulgent Genetics.
Earnings & Valuation
This table compares Fulgent Genetics and Surgery Partners”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fulgent Genetics | $322.67 million | 1.89 | -$60.51 million | ($2.82) | -7.87 |
| Surgery Partners | $3.37 billion | 0.56 | -$77.90 million | ($0.70) | -20.57 |
Fulgent Genetics has higher earnings, but lower revenue than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Fulgent Genetics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Fulgent Genetics has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.
Summary
Surgery Partners beats Fulgent Genetics on 9 of the 14 factors compared between the two stocks.
About Fulgent Genetics
Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.
About Surgery Partners
Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.
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