Response Genetics (OTCMKTS:RGDXQ) & OncoCyte (NASDAQ:OCX) Critical Review

OncoCyte (NASDAQ:OCX) and Response Genetics (OTCMKTS:RGDXQ) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OncoCyte and Response Genetics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OncoCyte	0	2	2	0	2.50
Response Genetics	0	0	0	0	N/A

OncoCyte currently has a consensus target price of $4.06, indicating a potential upside of 41.06%.

Valuation and Earnings

This table compares OncoCyte and Response Genetics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OncoCyte	$1.02 million	23.29	-$27.78 million	N/A	N/A
Response Genetics	N/A	N/A	N/A	N/A	N/A

Response Genetics has lower revenue, but higher earnings than OncoCyte.

Profitability

This table compares OncoCyte and Response Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OncoCyte	-3,558.46%	-149.88%	-45.79%
Response Genetics	N/A	N/A	N/A

Institutional and Insider Ownership

55.3% of OncoCyte shares are held by institutional investors. 1.9% of OncoCyte shares are held by company insiders. Comparatively, 4.9% of Response Genetics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Response Genetics beats OncoCyte on 4 of the 7 factors compared between the two stocks.

About OncoCyte

OncoCyte Corporation, a precision diagnostics company, focuses on development and commercialization of proprietary tests in the United States and internationally. The company is developing DetermaIO, a gene expression test that assesses the tumor microenvironment to predict response to immunotherapies; DetermaCNI, a blood-based monitoring tool for monitoring therapeutic efficacy in cancer patients; and VitaGraft, a blood-based solid organ transplantation monitoring test. It also provides testing services for biomarker discovery, assay design and development, clinical trial support, and various biomarker tests. The company has a collaboration agreement with Bio-Rad Laboratories, Inc. (Bio-Rad) to collaborate in the development and the commercialization of research use only and in vitro diagnostics kitted transplant products using Bio-Rad's ddPCR instruments and reagents. OncoCyte Corporation was incorporated in 2009 and is based in Irvine, California.

About Response Genetics

Response Genetics, Inc., a life sciences company, researches, develops, markets, and sells pharmacogenomic tests for use in the treatment of cancer in the United States, Europe, and internationally. The company offers tests for measuring predictive factors for therapy response in tumor tissue samples. It provides testing services for non-small cell lung cancer, colorectal cancer, gastric and gastroesophageal cancer, melanoma and thyroid cancer, breast cancer, and glioma through its ResponseDX: Lung, ResponseDX: Colon, ResponseDX: Gastric, ResponseDX: Melanoma, ResponseDX: Thyroid, ResponseDX: Breast, ResponseDX: Glioma, and ResponseDX: Tissue of Origin test suites. The company also develops tests for other tumor types; and provides technical component and professional component testing services. It serves community based oncologists, pathologists, physician offices, hospitals, and pharmaceutical companies through its sales force. The company was formerly known as Bio Type, Inc. and changed its name to Response Genetics, Inc. in August 2000. Response Genetics, Inc. was founded in 1999 and is headquartered in Los Angeles, California.