Veracyte (NASDAQ:VCYT) & CannLabs (OTCMKTS:CANL) Head to Head Comparison

CannLabs (OTCMKTS:CANL) and Veracyte (NASDAQ:VCYT) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Volatility & Risk

CannLabs has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Earnings and Valuation

This table compares CannLabs and Veracyte”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannLabs	N/A	N/A	N/A	N/A	N/A
Veracyte	$445.76 million	5.27	-$74.40 million	$0.30	100.40

CannLabs has higher earnings, but lower revenue than Veracyte.

Profitability

This table compares CannLabs and Veracyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CannLabs	N/A	N/A	N/A
Veracyte	-2.18%	3.02%	2.80%

Analyst Ratings

This is a summary of recent recommendations for CannLabs and Veracyte, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannLabs	0	0	0	0	0.00
Veracyte	1	1	8	0	2.70

Veracyte has a consensus price target of $43.40, indicating a potential upside of 44.09%. Given Veracyte’s stronger consensus rating and higher possible upside, analysts plainly believe Veracyte is more favorable than CannLabs.

Summary

Veracyte beats CannLabs on 7 of the 8 factors compared between the two stocks.

About CannLabs

CannLabs, Inc. provides cannabis testing laboratory services in the United States. Its testing services include potency testing, residual solvent analysis, microbiological testing, pesticide testing, heavy metals testing, nutrient analysis, terpenes analysis, shelf-life/stability studies, gene expression testing, and genotyping/phenotyping testing. The company also offers data/analytics and consulting, as well as education services. CannLabs, Inc. was incorporated in 2010 and is based in Denver, Colorado.

About Veracyte

Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.