Natera (NASDAQ:NTRA – Get Free Report) and Fractyl Health (NASDAQ:GUTS – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Natera and Fractyl Health, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natera | 1 | 4 | 16 | 2 | 2.83 |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
Natera presently has a consensus target price of $336.07, suggesting a potential downside of 18.54%. Fractyl Health has a consensus target price of $5.50, suggesting a potential upside of 1,032.62%. Given Fractyl Health’s higher possible upside, analysts clearly believe Fractyl Health is more favorable than Natera.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Natera | -7.11% | -11.38% | -7.87% |
| Fractyl Health | N/A | -1,362.10% | -84.89% |
Volatility and Risk
Natera has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500.
Valuation & Earnings
This table compares Natera and Fractyl Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natera | $2.71 billion | 21.97 | -$208.16 million | ($1.36) | -303.35 |
| Fractyl Health | $90,000.00 | 858.86 | -$140.95 million | ($0.88) | -0.55 |
Fractyl Health has lower revenue, but higher earnings than Natera. Natera is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
99.9% of Natera shares are owned by institutional investors. 5.1% of Natera shares are owned by company insiders. Comparatively, 8.4% of Fractyl Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Fractyl Health beats Natera on 8 of the 15 factors compared between the two stocks.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
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