Head-To-Head Survey: PharmChem (OTCMKTS:PCHM) and Natera (NASDAQ:NTRA)

PharmChem (OTCMKTS:PCHM) and Natera (NASDAQ:NTRA) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for PharmChem and Natera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PharmChem 0 0 0 0 N/A
Natera 0 1 9 0 2.90

Natera has a consensus price target of $83.00, indicating a potential downside of 26.73%. Given Natera’s higher possible upside, analysts clearly believe Natera is more favorable than PharmChem.

Volatility & Risk

PharmChem has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, Natera has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

84.1% of Natera shares are owned by institutional investors. 17.4% of PharmChem shares are owned by insiders. Comparatively, 9.3% of Natera shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares PharmChem and Natera’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PharmChem N/A N/A N/A N/A N/A
Natera $302.33 million 31.99 -$124.83 million ($1.99) -56.92

PharmChem has higher earnings, but lower revenue than Natera.

Profitability

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

Net Margins Return on Equity Return on Assets
PharmChem N/A N/A N/A
Natera -52.11% -53.39% -25.89%

Summary

Natera beats PharmChem on 5 of the 9 factors compared between the two stocks.

PharmChem Company Profile

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.

Natera Company Profile

Natera, Inc. provides preconception and prenatal genetic testing services. It offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother, as well as twin pregnancies for zygosity; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases; and Spectrum 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; 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. 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 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.

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