Charles River Laboratories International (NYSE:CRL – Get Free Report) and CareDx (NASDAQ:CDNA – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
98.9% of Charles River Laboratories International shares are held by institutional investors. 1.3% of Charles River Laboratories International shares are held by insiders. Comparatively, 2.4% of CareDx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Charles River Laboratories International and CareDx”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Charles River Laboratories International | $4.02 billion | 2.22 | -$144.34 million | ($3.76) | -49.25 |
| CareDx | $379.80 million | 3.56 | -$21.35 million | ($0.16) | -163.63 |
CareDx has lower revenue, but higher earnings than Charles River Laboratories International. CareDx is trading at a lower price-to-earnings ratio than Charles River Laboratories International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Charles River Laboratories International has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, CareDx has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Charles River Laboratories International and CareDx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charles River Laboratories International | 1 | 3 | 12 | 0 | 2.69 |
| CareDx | 1 | 4 | 1 | 0 | 2.00 |
Charles River Laboratories International presently has a consensus price target of $211.00, suggesting a potential upside of 13.95%. CareDx has a consensus price target of $25.00, suggesting a potential downside of 4.51%. Given Charles River Laboratories International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Charles River Laboratories International is more favorable than CareDx.
Profitability
This table compares Charles River Laboratories International and CareDx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Charles River Laboratories International | -4.59% | 15.36% | 6.61% |
| CareDx | -2.01% | -2.65% | -1.96% |
Summary
Charles River Laboratories International beats CareDx on 8 of the 14 factors compared between the two stocks.
About Charles River Laboratories International
Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.
About CareDx
CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.
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