GenMark Diagnostics (NASDAQ: GNMK) and Agilent Technologies (NYSE:A) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for GenMark Diagnostics and Agilent Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GenMark Diagnostics 0 0 5 0 3.00
Agilent Technologies 0 3 10 0 2.77

GenMark Diagnostics presently has a consensus price target of $14.40, suggesting a potential upside of 50.63%. Agilent Technologies has a consensus price target of $65.59, suggesting a potential downside of 0.36%. Given GenMark Diagnostics’ stronger consensus rating and higher possible upside, research analysts clearly believe GenMark Diagnostics is more favorable than Agilent Technologies.

Dividends

Agilent Technologies pays an annual dividend of $0.53 per share and has a dividend yield of 0.8%. GenMark Diagnostics does not pay a dividend. Agilent Technologies pays out 27.3% of its earnings in the form of a dividend.

Profitability

This table compares GenMark Diagnostics and Agilent Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GenMark Diagnostics -111.96% -109.89% -60.26%
Agilent Technologies 14.36% 16.95% 9.30%

Earnings & Valuation

This table compares GenMark Diagnostics and Agilent Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GenMark Diagnostics $50.59 million 10.33 -$49.93 million ($1.21) -7.90
Agilent Technologies $4.39 billion 4.83 $1.02 billion $1.94 33.93

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

Risk and Volatility

GenMark Diagnostics has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Agilent Technologies has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Summary

Agilent Technologies beats GenMark Diagnostics on 9 of the 13 factors compared between the two stocks.

About GenMark Diagnostics

GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.

About Agilent Technologies

Agilent Technologies, Inc. provides application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow. The Company serves the life sciences, diagnostics and applied chemical markets. It has three business segments: life sciences and applied markets business, diagnostics and genomics business, and Agilent CrossLab business. Its life sciences and applied markets business segment offers instruments and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular level. Its diagnostics and genomics business segment includes the reagent partnership, pathology, companion diagnostics, genomics and the nucleic acid solutions businesses. Its Agilent CrossLab business segment spans the entire lab with its consumables and services portfolio.

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