CareDx vs Natera Which Is a Better Investment?

CareDx and Natera are two prominent companies in the rapidly growing field of genetic testing and personalized medicine. Both companies offer innovative solutions for diagnosing and monitoring various medical conditions, including organ transplant rejection and cancer. While CareDx focuses primarily on transplant diagnostics, Natera's main focus is on reproductive health and oncology. Investors are closely monitoring the performance of both stocks as they continue to expand their market presence and drive innovation in the healthcare industry.

CareDx or Natera?

When comparing CareDx and Natera, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CareDx and Natera.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CareDx has a dividend yield of -%, while Natera has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CareDx reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Natera reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CareDx P/E ratio at -8.42 and Natera's P/E ratio at -96.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CareDx P/B ratio is 4.43 while Natera's P/B ratio is 23.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CareDx has seen a 5-year revenue growth of 1.43%, while Natera's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CareDx's ROE at -54.41% and Natera's ROE at -26.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.65 for CareDx and $163.81 for Natera. Over the past year, CareDx's prices ranged from $7.42 to $34.84, with a yearly change of 369.54%. Natera's prices fluctuated between $57.22 and $175.63, with a yearly change of 206.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.