GeneLink (OTCMKTS:GNLKQ) & Veracyte (NASDAQ:VCYT) Critical Analysis

GeneLink (OTCMKTS:GNLKQ) and Veracyte (NASDAQ:VCYT) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for GeneLink and Veracyte, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneLink	0	0	0	0	0.00
Veracyte	1	1	7	0	2.67

Veracyte has a consensus price target of $41.13, suggesting a potential downside of 0.13%. Given GeneLink’s higher probable upside, analysts plainly believe GeneLink is more favorable than Veracyte.

Volatility and Risk

GeneLink has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares GeneLink and Veracyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneLink	N/A	N/A	N/A
Veracyte	-2.18%	3.02%	2.80%

Valuation and Earnings

This table compares GeneLink and Veracyte”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneLink	N/A	N/A	N/A	N/A	N/A
Veracyte	$425.33 million	7.50	-$74.40 million	($0.15)	-274.53

GeneLink has higher earnings, but lower revenue than Veracyte.

Summary

Veracyte beats GeneLink on 6 of the 8 factors compared between the two stocks.

About GeneLink

GeneLink, Inc. offers 12-gene DNA assessment services. The company also provides health custom supplements. In addition, it formulates a line of skin care products. The company was founded in 1994 and is based in Orlando, Florida.

About Veracyte

Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.