Fortrea (NASDAQ:FTRE) and Veracyte (NASDAQ:VCYT) Head-To-Head Analysis

Fortrea (NASDAQ:FTRE) and Veracyte (NASDAQ:VCYT) are both mid-cap 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.

Valuation & Earnings

This table compares Fortrea and Veracyte”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortrea	$3.01 billion	0.71	-$3.40 million	($1.39)	-17.14
Veracyte	$361.05 million	7.36	-$74.40 million	($0.94)	-36.80

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fortrea	-10.09%	1.98%	0.78%
Veracyte	-13.52%	1.52%	1.41%

Analyst Recommendations

This is a summary of recent ratings and target prices for Fortrea and Veracyte, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortrea	1	7	3	1	2.33
Veracyte	1	0	4	0	2.60

Fortrea presently has a consensus price target of $27.20, suggesting a potential upside of 12.96%. Veracyte has a consensus price target of $31.25, suggesting a potential downside of 10.33%. Given Fortrea’s higher possible upside, research analysts clearly believe Fortrea is more favorable than Veracyte.

Risk and Volatility

Fortrea has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Summary

Fortrea beats Veracyte on 7 of the 13 factors compared between the two stocks.

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.

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.