Critical Contrast: Concord Medical Services (NYSE:CCM) and Guardant Health (NASDAQ:GH)

Concord Medical Services (NYSE:CCM) and Guardant Health (NASDAQ:GH) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Volatility & Risk

Concord Medical Services has a beta of -0.97, suggesting that its share price is 197% less volatile than the S&P 500. Comparatively, Guardant Health has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Concord Medical Services and Guardant Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concord Medical Services	1	0	0	0	1.00
Guardant Health	1	0	23	1	2.96

Guardant Health has a consensus price target of $183.78, indicating a potential upside of 10.88%. Given Guardant Health’s stronger consensus rating and higher possible upside, analysts clearly believe Guardant Health is more favorable than Concord Medical Services.

Earnings & Valuation

This table compares Concord Medical Services and Guardant Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concord Medical Services	$65.85 million	0.31	-$13.27 million	N/A	N/A
Guardant Health	$982.02 million	22.65	-$416.28 million	($3.49)	-47.49

Concord Medical Services has higher earnings, but lower revenue than Guardant Health.

Profitability

This table compares Concord Medical Services and Guardant Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concord Medical Services	N/A	N/A	N/A
Guardant Health	-38.33%	N/A	-25.40%

Institutional & Insider Ownership

92.6% of Guardant Health shares are held by institutional investors. 46.5% of Concord Medical Services shares are held by insiders. Comparatively, 5.6% of Guardant Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Guardant Health beats Concord Medical Services on 8 of the 12 factors compared between the two stocks.

About Concord Medical Services

Concord Medical Services Holdings Limited, through its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the People's Republic of China. It operates in two segments, Network and Hospital. The company's services include linear accelerators and external beam radiotherapy, proton therapy system, gamma knife radiosurgery, and diagnostic imaging services. Its other treatments and diagnostic services comprise positron emission tomography-computed tomography and magnetic resonance imaging scanners. In addition, the company provides clinical support services, such as developing treatment protocols for doctors, and organizing joint diagnosis between doctors in its network and clinical research, as well as helps to recruit and determine the compensation of doctors and other medical personnel. Further, it offers radiotherapy and diagnostic equipment leasing, management services, and premium cancer and proton treatment services to hospitals, as well as teleconsultation and medical information technology services; and sells medical equipment. Additionally, the company operates specialty cancer hospitals, which offers radiation, imaging, test laboratory, inpatient, and nursing services. Concord Medical Services Holdings Limited was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

About Guardant Health

Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.