Analyzing Insulet (NASDAQ:PODD) and Co-Diagnostics (NASDAQ:CODX)

Co-Diagnostics (NASDAQ:CODX) and Insulet (NASDAQ:PODD) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

15.0% of Co-Diagnostics shares are held by institutional investors. 6.1% of Co-Diagnostics shares are held by insiders. Comparatively, 0.5% of Insulet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Co-Diagnostics and Insulet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Co-Diagnostics	0	1	0	0	2.00
Insulet	0	3	11	0	2.79

Co-Diagnostics presently has a consensus price target of $1.50, suggesting a potential upside of 22.95%. Insulet has a consensus price target of $242.29, suggesting a potential upside of 2.04%. Given Co-Diagnostics’ higher possible upside, equities analysts plainly believe Co-Diagnostics is more favorable than Insulet.

Valuation and Earnings

This table compares Co-Diagnostics and Insulet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Co-Diagnostics	$6.81 million	5.72	-$35.33 million	($1.26)	-0.97
Insulet	$1.87 billion	8.89	$206.30 million	$5.50	43.17

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

Volatility and Risk

Co-Diagnostics has a beta of -0.84, indicating that its share price is 184% less volatile than the S&P 500. Comparatively, Insulet has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Co-Diagnostics and Insulet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Co-Diagnostics	-411.18%	-44.69%	-40.47%
Insulet	21.11%	30.73%	9.10%

Summary

Insulet beats Co-Diagnostics on 11 of the 14 factors compared between the two stocks.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.