GeneDx (NASDAQ:WGS – Get Free Report) and Acadia Healthcare (NASDAQ:ACHC – Get Free Report) are both mid-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Risk & Volatility
GeneDx has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for GeneDx and Acadia Healthcare, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GeneDx | 1 | 0 | 7 | 1 | 2.89 |
| Acadia Healthcare | 2 | 5 | 7 | 1 | 2.47 |
Valuation and Earnings
This table compares GeneDx and Acadia Healthcare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GeneDx | $427.54 million | 6.05 | -$21.02 million | ($3.64) | -23.82 |
| Acadia Healthcare | $3.31 billion | 0.78 | -$1.10 billion | ($12.45) | -2.23 |
GeneDx has higher earnings, but lower revenue than Acadia Healthcare. GeneDx is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
61.7% of GeneDx shares are held by institutional investors. 25.2% of GeneDx shares are held by insiders. Comparatively, 1.2% of Acadia Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares GeneDx and Acadia Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GeneDx | -23.41% | 4.12% | 2.26% |
| Acadia Healthcare | -33.44% | 6.19% | 2.42% |
Summary
GeneDx beats Acadia Healthcare on 8 of the 13 factors compared between the two stocks.
About GeneDx
GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.
About Acadia Healthcare
Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.
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