Medpace (NASDAQ:MEDP) versus CareDx (NASDAQ:CDNA) Head-To-Head Survey

CareDx (NASDAQ:CDNA) and Medpace (NASDAQ:MEDP) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Risk and Volatility

CareDx has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, Medpace has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

78.0% of Medpace shares are owned by institutional investors. 2.4% of CareDx shares are owned by insiders. Comparatively, 20.5% of Medpace shares are owned 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.

Earnings & Valuation

This table compares CareDx and Medpace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareDx	$379.80 million	3.97	-$21.35 million	($0.16)	-182.44
Medpace	$2.53 billion	6.29	$451.12 million	$15.91	35.05

Medpace has higher revenue and earnings than CareDx. CareDx is trading at a lower price-to-earnings ratio than Medpace, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CareDx and Medpace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareDx	-2.01%	-2.65%	-1.96%
Medpace	17.19%	120.89%	24.79%

Analyst Recommendations

This is a summary of recent recommendations for CareDx and Medpace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareDx	1	4	1	0	2.00
Medpace	1	10	4	0	2.20

CareDx currently has a consensus price target of $25.00, suggesting a potential downside of 14.35%. Medpace has a consensus price target of $467.08, suggesting a potential downside of 16.23%. Given CareDx’s higher probable upside, analysts plainly believe CareDx is more favorable than Medpace.

Summary

Medpace beats CareDx on 12 of the 14 factors compared between the two stocks.

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.

About Medpace

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.