Contrasting NeoGenomics (NASDAQ:NEO) and AstraZeneca (NASDAQ:AZN)

AstraZeneca (NASDAQ:AZN) and NeoGenomics (NASDAQ:NEO) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares AstraZeneca and NeoGenomics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AstraZeneca	$54.07 billion	5.26	$7.04 billion	$3.01	30.46
NeoGenomics	$660.57 million	2.54	-$78.73 million	($0.88)	-14.74

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

Volatility & Risk

AstraZeneca has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares AstraZeneca and NeoGenomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AstraZeneca	16.17%	32.89%	13.00%
NeoGenomics	-16.00%	-3.36%	-1.95%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AstraZeneca and NeoGenomics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AstraZeneca	1	0	9	0	2.80
NeoGenomics	1	6	5	1	2.46

AstraZeneca currently has a consensus target price of $95.75, indicating a potential upside of 4.43%. NeoGenomics has a consensus target price of $12.00, indicating a potential downside of 7.48%. Given AstraZeneca’s stronger consensus rating and higher probable upside, analysts clearly believe AstraZeneca is more favorable than NeoGenomics.

Institutional & Insider Ownership

20.4% of AstraZeneca shares are held by institutional investors. Comparatively, 98.5% of NeoGenomics shares are held by institutional investors. 2.4% of NeoGenomics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

AstraZeneca beats NeoGenomics on 11 of the 15 factors compared between the two stocks.

About AstraZeneca

AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company’s marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006; BenevolentAI for drug discovery for systemic lupus erythematosus; and Absci Corporation for AI-driven drug discovery against an oncology target. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.

About NeoGenomics

NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States and the United Kingdom. It operates through Clinical Services and Advanced Diagnostics segments. The company offers testing services to hospitals, academic centers, pathologists, oncologists, clinicians, pharmaceutical companies, and clinical laboratories. It also provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. In addition, the company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.