Analyzing Centogene (NASDAQ:CNTG) and Natera (NASDAQ:NTRA)

Natera (NASDAQ:NTRA) and Centogene (NASDAQ:CNTG) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Profitability

This table compares Natera and Centogene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natera -42.45% -252.79% -42.01%
Centogene N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings for Natera and Centogene, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natera 0 2 3 0 2.60
Centogene 0 0 4 0 3.00

Natera presently has a consensus target price of $42.40, suggesting a potential upside of 21.11%. Centogene has a consensus target price of $16.67, suggesting a potential upside of 56.20%. Given Centogene’s stronger consensus rating and higher possible upside, analysts clearly believe Centogene is more favorable than Natera.

Insider & Institutional Ownership

85.2% of Natera shares are owned by institutional investors. 9.3% of Natera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Natera and Centogene’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natera $257.65 million 10.53 -$128.15 million ($2.15) -16.28
Centogene $47.81 million 4.43 -$12.95 million N/A N/A

Centogene has lower revenue, but higher earnings than Natera.

Summary

Centogene beats Natera on 7 of the 11 factors compared between the two stocks.

Natera Company Profile

Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. It primarily offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases that could be passed on to the carrier's children; and Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora products of conception test to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother's blood and a blood sample from the alleged father. In addition, it offers Constellation, a cloud-based software product that allows laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics in order to validate and launch tests; Evercord, a cord blood and cord tissue processing and storage service; and Signatera, a circulating tumor DNA technology that analyzes and tracks mutations to an individual's tumor. The company offers products through its direct sales force, as well as through a network of approximately 100 laboratory and distribution partners in the United States and internationally. Natera, Inc. has research collaborations with the Institut Jules Bordet and Fox Chase Cancer Center. The company was formerly known as Gene Security Network, Inc. and changed its name to Natera, Inc. in 2012. Natera, Inc. was founded in 2003 and is headquartered in San Carlos, California.

Centogene Company Profile

Centogene B.V. operates as a commercial-stage rare disease company worldwide. It focuses on transforming clinical and genetic data into medical solutions for patients, physicians, and pharmaceutical companies. The company develops rare disease platform, a data repository, which includes epidemiologic, phenotypic, and heterogenetic data that enhances methods for identifying and monitoring rare hereditary diseases and provide solutions that accelerate the development of orphan drugs. It operates through two segments, Pharmaceutical and Diagnostics. The Pharmaceutical segment offers various services, including early patient recruitment and identification, epidemiological insights, biomarker discovery, and patient monitoring. The Diagnostics segment provides genetic sequencing and diagnostics services to physicians, laboratories, or hospitals directly or through distributors. Centogene B.V. was founded in 2006 and is headquartered in Rostock, Germany.

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