Veracyte (NASDAQ:VCYT – Get Free Report) and Fortrea (NASDAQ:FTRE – Get Free Report) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Veracyte and Fortrea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | -13.52% | 1.52% | 1.41% |
| Fortrea | -10.09% | 1.98% | 0.78% |
Volatility and Risk
Veracyte has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Fortrea has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veracyte | $361.05 million | 7.36 | -$74.40 million | ($0.94) | -36.80 |
| Fortrea | $3.01 billion | 0.71 | -$3.40 million | ($1.39) | -17.14 |
Fortrea has higher revenue and earnings than Veracyte. Veracyte is trading at a lower price-to-earnings ratio than Fortrea, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Veracyte and Fortrea, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 0 | 4 | 0 | 2.60 |
| Fortrea | 1 | 7 | 3 | 1 | 2.33 |
Veracyte currently has a consensus price target of $31.25, suggesting a potential downside of 10.33%. Fortrea has a consensus price target of $27.20, suggesting a potential upside of 12.96%. Given Fortrea’s higher possible upside, analysts plainly believe Fortrea is more favorable than Veracyte.
Summary
Fortrea beats Veracyte on 7 of the 13 factors compared between the two stocks.
About Veracyte
Veracyte, Inc. operates as a diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier for cancerous thyroid nodules; Decipher Prostate Biopsy and Radical Prostatectomy for prostate cancer diagnosis; Prosigna Breast Cancer Assay for breast cancer diagnosis; Percepta Nasal Swab Test for lung cancer diagnosis; and Envisia Genomic Classifier for diagnosing interstitial lung disease, including idiopathic pulmonary fibrosis. It is also developing Envisia Classifier, the nCounter analysis system; and LymphMark for lymphoma subtyping test. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.
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.
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