InnovAge (NASDAQ:INNV – Get Free Report) and NeoGenomics (NASDAQ:NEO – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.
Institutional and Insider Ownership
12.3% of InnovAge shares are held by institutional investors. Comparatively, 98.5% of NeoGenomics shares are held by institutional investors. 1.0% of InnovAge shares are held by company insiders. Comparatively, 1.1% of NeoGenomics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
InnovAge has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InnovAge | $989.71 million | 1.24 | -$2.54 million | ($0.02) | -449.00 |
| NeoGenomics | $727.33 million | 3.31 | -$108.03 million | ($0.40) | -46.85 |
InnovAge has higher revenue and earnings than NeoGenomics. InnovAge is trading at a lower price-to-earnings ratio than NeoGenomics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares InnovAge and NeoGenomics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InnovAge | -0.26% | -1.03% | -0.47% |
| NeoGenomics | -6.77% | -1.99% | -1.21% |
Analyst Recommendations
This is a breakdown of recent ratings for InnovAge and NeoGenomics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InnovAge | 2 | 1 | 1 | 0 | 1.75 |
| NeoGenomics | 1 | 2 | 6 | 1 | 2.70 |
InnovAge presently has a consensus price target of $10.50, suggesting a potential upside of 16.93%. NeoGenomics has a consensus price target of $17.67, suggesting a potential downside of 5.73%. Given InnovAge’s higher probable upside, analysts plainly believe InnovAge is more favorable than NeoGenomics.
Summary
NeoGenomics beats InnovAge on 8 of the 15 factors compared between the two stocks.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
About NeoGenomics
NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States and the United Kingdom. It operates through Clinical Services and Advanced Diagnostics segments. The company offers testing services to hospitals, academic centers, pathologists, oncologists, clinicians, pharmaceutical companies, and clinical laboratories. It also provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. In addition, the company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.
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