Financial Comparison: Enhabit (NYSE:EHAB) versus Co-Diagnostics (NASDAQ:CODX)

Enhabit (NYSE:EHAB) and Co-Diagnostics (NASDAQ:CODX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

15.0% of Co-Diagnostics shares are owned by institutional investors. 3.4% of Enhabit shares are owned by company insiders. Comparatively, 8.4% of Co-Diagnostics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Enhabit has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Co-Diagnostics has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Enhabit and Co-Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enhabit	-12.84%	2.72%	1.25%
Co-Diagnostics	-3,588.33%	-69.49%	-60.49%

Valuation & Earnings

This table compares Enhabit and Co-Diagnostics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enhabit	$1.03 billion	0.38	-$156.20 million	($2.67)	-2.91
Co-Diagnostics	$3.91 million	3.73	-$37.64 million	($1.15)	-0.33

Co-Diagnostics has lower revenue, but higher earnings than Enhabit. Enhabit is trading at a lower price-to-earnings ratio than Co-Diagnostics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Enhabit and Co-Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enhabit	1	2	1	0	2.00
Co-Diagnostics	1	1	1	1	2.50

Enhabit currently has a consensus price target of $8.67, suggesting a potential upside of 11.68%. Co-Diagnostics has a consensus price target of $5.50, suggesting a potential upside of 1,351.19%. Given Co-Diagnostics’ stronger consensus rating and higher possible upside, analysts plainly believe Co-Diagnostics is more favorable than Enhabit.

Summary

Co-Diagnostics beats Enhabit on 9 of the 14 factors compared between the two stocks.

About Enhabit

Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was founded in 1998 and is based in Dallas, Texas.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.