Financial Review: NeoGenomics (NASDAQ:NEO) vs. GRI Bio (NASDAQ:GRI)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GRI Bio and NeoGenomics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GRI Bio	1	0	2	0	2.33
NeoGenomics	1	8	5	0	2.29

GRI Bio currently has a consensus price target of $644.00, suggesting a potential upside of 27,539.48%. NeoGenomics has a consensus price target of $11.86, suggesting a potential upside of 53.00%. Given GRI Bio’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GRI Bio is more favorable than NeoGenomics.

Institutional & Insider Ownership

34.0% of GRI Bio shares are owned by institutional investors. Comparatively, 98.5% of NeoGenomics shares are owned by institutional investors. 8.7% of GRI Bio shares are owned by company insiders. Comparatively, 2.4% of NeoGenomics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

GRI Bio has a beta of -1.34, suggesting that its stock price is 234% less volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Earnings and Valuation

This table compares GRI Bio and NeoGenomics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GRI Bio	N/A	N/A	-$11.96 million	($235.02)	-0.01
NeoGenomics	$727.33 million	1.38	-$108.03 million	($0.84)	-9.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GRI Bio	N/A	-381.74%	-206.45%
NeoGenomics	-14.85%	-3.10%	-1.85%

Summary

NeoGenomics beats GRI Bio on 7 of the 13 factors compared between the two stocks.

About GRI Bio

GRI Bio, Inc., a clinical-stage biopharmaceutical company, focuses on treating inflammatory, fibrotic, and autoimmune diseases in the United States. Its product pipeline comprises GRI-0621, which is in phase II clinical development for the treatment of idiopathic pulmonary fibrosis; GRI-0803 which is in phase I trial for the treatment of systematic lupus erythematosus; GRI-0124, which is in pre-clinical development for the treatment of primary sclerosing cholangitis; and GRI-0729 in pre-clinical development. The company also develops ADAIR and ADMIR for treatment of attention -deficit/hyperactivity disorder. GRI Bio, Inc. was formerly known as Glycoregimmune, Inc. GRI Bio, Inc. was founded in 2009 and is based in LA Jolla, California.

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.