Critical Survey: Enovis (NYSE:ENOV) vs. Fulgent Genetics (NASDAQ:FLGT)

Enovis (NYSE:ENOV) and Fulgent Genetics (NASDAQ:FLGT) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk and Volatility

Enovis has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Enovis shares are held by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are held by institutional investors. 2.9% of Enovis shares are held by company insiders. Comparatively, 36.2% of Fulgent Genetics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Enovis and Fulgent Genetics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovis	1	1	7	0	2.67
Fulgent Genetics	1	2	2	0	2.20

Enovis currently has a consensus price target of $44.50, indicating a potential upside of 87.38%. Fulgent Genetics has a consensus price target of $27.00, indicating a potential upside of 40.99%. Given Enovis’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Enovis is more favorable than Fulgent Genetics.

Earnings & Valuation

This table compares Enovis and Fulgent Genetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovis	$2.25 billion	0.61	-$1.18 billion	($19.88)	-1.19
Fulgent Genetics	$322.67 million	1.69	-$60.51 million	($2.39)	-8.01

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

Profitability

This table compares Enovis and Fulgent Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enovis	-49.92%	10.32%	4.57%
Fulgent Genetics	-23.04%	-3.24%	-2.97%

Summary

Enovis beats Fulgent Genetics on 9 of the 14 factors compared between the two stocks.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.