Reviewing Standard BioTools (NASDAQ:LAB) & Fortrea (NASDAQ:FTRE)

Fortrea (NASDAQ:FTRE) and Standard BioTools (NASDAQ:LAB) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Fortrea and Standard BioTools’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortrea	-3.18%	10.72%	2.17%
Standard BioTools	100.36%	-7.57%	-6.14%

Volatility & Risk

Fortrea has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Standard BioTools has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Institutional & Insider Ownership

53.7% of Standard BioTools shares are owned by institutional investors. 0.7% of Fortrea shares are owned by insiders. Comparatively, 26.8% of Standard BioTools shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fortrea and Standard BioTools, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortrea	1	6	5	0	2.33
Standard BioTools	1	2	0	0	1.67

Fortrea currently has a consensus price target of $20.75, suggesting a potential upside of 15.65%. Standard BioTools has a consensus price target of $1.35, suggesting a potential upside of 93.97%. Given Standard BioTools’ higher probable upside, analysts plainly believe Standard BioTools is more favorable than Fortrea.

Valuation and Earnings

This table compares Fortrea and Standard BioTools”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortrea	$2.72 billion	0.63	-$986.20 million	($0.91)	-19.72
Standard BioTools	$85.33 million	3.20	-$74.90 million	$0.22	3.16

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

Summary

Standard BioTools beats Fortrea on 8 of the 14 factors compared between the two stocks.

About Fortrea

Fortrea Holdings Inc., a contract research organization, primarily engages in the provision of biopharmaceutical product and medical device development services worldwide. The company operates through two segments: Clinical Services and Enabling Services. The Clinical Services segment provides across the clinical pharmacology and clinical development spectrum. The Enabling Services segment provides patient access and clinical trial technology solutions to customers that streamline complex randomization and optimize the trial drug supply process. The company offers delivery models that include full service, functional service provider, and hybrid service structures. It also offers phase I-IV clinical trial management, differentiated technology enabled trial solutions, and post approval services, as well as consulting services. The company serves pharmaceutical, biotechnology, and medical device organizations. Fortrea Holdings Inc. was incorporated in 2023 and is headquartered in Durham, North Carolina.

About Standard BioTools

Standard BioTools Inc., together with its subsidiaries, provides instruments, consumables, reagents, and software services for researchers and clinical laboratories in the Americas, Europe, the Middle East, Africa, and the Asia pacific. It operates through two segments: Proteomics and Genomics. The company offers analytical systems, such as CyTOF XT System, a CyTOF XT mass cytometry system performs automated high-parameter single-cell analysis using antibodies conjugated to metal isotopes; and Hyperion XTi imaging system, a spatial biology instrument. It also provides genomics, such as X9 Real-Time PCR System, a real-time PCR analytical instrument including pre-processing steps for microfluidics-based workflows using (integrated fluidic circuit) IFCs; and IFC Controllers, a controller which is designed to work with IFC formats. In addition, the company offers analytical instruments comprising Biomark HD system, a real-time PCR analytical instrument for microfluidics-based workflows using prepared IFCs. It sells its products to academic research institutions; translational research and medicine centers; cancer centers; clinical research laboratories; biopharmaceutical, biotechnology, and plant and animal research companies; and contract research organizations. It has license agreements with California Institute of Technology, Harvard University, and Caliper Life Sciences, Inc. The company was formerly known as Fluidigm Corporation and changed its name to Standard BioTools Inc. in April 2022. Fluidigm Corporation was incorporated in 1999 and is headquartered in South San Francisco, California.