Natera (NASDAQ:NTRA) & Grail (NASDAQ:GRAL) Financial Comparison

Natera (NASDAQ:NTRA) and Grail (NASDAQ:GRAL) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Natera and Grail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natera	-14.01%	-26.23%	-14.27%
Grail	N/A	N/A	N/A

Valuation and Earnings

This table compares Natera and Grail”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natera	$1.08 billion	20.97	-$434.80 million	($1.76)	-97.69
Grail	$117.67 million	6.46	N/A	N/A	N/A

Grail has lower revenue, but higher earnings than Natera.

Institutional and Insider Ownership

99.9% of Natera shares are held by institutional investors. 7.6% of Natera shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Natera and Grail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natera	0	0	16	0	3.00
Grail	0	3	0	0	2.00

Natera presently has a consensus price target of $160.63, indicating a potential downside of 6.58%. Grail has a consensus price target of $16.00, indicating a potential downside of 29.33%. Given Natera’s stronger consensus rating and higher probable upside, equities analysts clearly believe Natera is more favorable than Grail.

Summary

Natera beats Grail on 7 of the 10 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 Grail

GRAIL, Inc. is a healthcare company. It engages in the development of a technology for early detection of cancer. The company was founded by Jeffrey T. Huber, William H. Rastetter, and Mostafa Ronaghi on September 11, 2015 and is headquartered in Menlo Park, CA.