Prenetics Global (NASDAQ:PRE) and Talis Biomedical (NASDAQ:TLIS) Critical Review

Talis Biomedical (NASDAQ:TLIS) and Prenetics Global (NASDAQ:PRE) are both small-cap 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Talis Biomedical and Prenetics Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talis Biomedical	1	0	0	0	1.00
Prenetics Global	0	0	1	0	3.00

Talis Biomedical presently has a consensus price target of $5.00, indicating a potential downside of 39.98%. Prenetics Global has a consensus price target of $9.00, indicating a potential upside of 52.54%. Given Prenetics Global’s stronger consensus rating and higher probable upside, analysts clearly believe Prenetics Global is more favorable than Talis Biomedical.

Institutional and Insider Ownership

43.8% of Talis Biomedical shares are held by institutional investors. Comparatively, 25.0% of Prenetics Global shares are held by institutional investors. 46.0% of Talis Biomedical shares are held by insiders. Comparatively, 7.8% of Prenetics Global 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.

Volatility & Risk

Talis Biomedical has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Prenetics Global has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500.

Profitability

This table compares Talis Biomedical and Prenetics Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talis Biomedical	-5,784.73%	-75.40%	-56.16%
Prenetics Global	-282.96%	-10.76%	-8.79%

Valuation & Earnings

This table compares Talis Biomedical and Prenetics Global’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talis Biomedical	$2.13 million	7.12	-$62.01 million	($31.43)	-0.27
Prenetics Global	$21.74 million	2.48	-$62.72 million	($4.45)	-1.33

Talis Biomedical has higher earnings, but lower revenue than Prenetics Global. Prenetics Global is trading at a lower price-to-earnings ratio than Talis Biomedical, indicating that it is currently the more affordable of the two stocks.

Summary

Prenetics Global beats Talis Biomedical on 8 of the 14 factors compared between the two stocks.

About Talis Biomedical

Talis Biomedical Corporation operates as a molecular diagnostic company, focusing on developing medical devices for infectious diseases and other conditions at the point of care in the United States. Talis Biomedical Corporation was incorporated in 2013 and is headquartered in Chicago, Illinois.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.