Natera (NASDAQ:NTRA – Get Free Report) and Fortrea (NASDAQ:FTRE – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Natera has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Fortrea has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Profitability
This table compares Natera and Fortrea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natera | -21.47% | -36.74% | -19.90% |
| Fortrea | -10.09% | 1.98% | 0.78% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natera | 0 | 0 | 16 | 0 | 3.00 |
| Fortrea | 1 | 8 | 2 | 1 | 2.25 |
Natera presently has a consensus target price of $124.44, indicating a potential upside of 1.71%. Fortrea has a consensus target price of $23.60, indicating a potential upside of 21.65%. Given Fortrea’s higher probable upside, analysts clearly believe Fortrea is more favorable than Natera.
Insider & Institutional Ownership
99.9% of Natera shares are held by institutional investors. 7.6% of Natera shares are held by insiders. Comparatively, 0.1% of Fortrea shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Natera and Fortrea”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natera | $1.36 billion | 11.04 | -$434.80 million | ($3.12) | -39.21 |
| Fortrea | $3.01 billion | 0.58 | -$3.40 million | ($1.39) | -13.96 |
Fortrea has higher revenue and earnings than Natera. Natera is trading at a lower price-to-earnings ratio than Fortrea, indicating that it is currently the more affordable of the two stocks.
Summary
Fortrea beats Natera on 9 of the 15 factors compared between the two stocks.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.
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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