Head to Head Analysis: InnovAge (NASDAQ:INNV) & Natera (NASDAQ:NTRA)

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

Analyst Recommendations

This is a summary of current ratings and price targets for InnovAge and Natera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	1	0	0	1.33
Natera	1	4	14	2	2.81

InnovAge presently has a consensus price target of $7.00, indicating a potential downside of 24.00%. Natera has a consensus price target of $256.53, indicating a potential upside of 12.12%. Given Natera’s stronger consensus rating and higher probable upside, analysts clearly believe Natera is more favorable than InnovAge.

Insider and Institutional Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 99.9% of Natera shares are owned by institutional investors. 1.0% of InnovAge shares are owned by insiders. Comparatively, 5.1% of Natera shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

InnovAge has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Natera has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InnovAge	-1.22%	-4.73%	-2.20%
Natera	-9.05%	-14.74%	-10.27%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	1.46	-$30.31 million	($0.09)	-102.33
Natera	$2.31 billion	14.21	-$208.16 million	($1.63)	-140.37

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

Summary

Natera beats InnovAge on 9 of the 15 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

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.