Contrasting GeneLink (OTCMKTS:GNLKQ) and Veracyte (NASDAQ:VCYT)

Veracyte (NASDAQ:VCYT) and GeneLink (OTCMKTS:GNLKQ) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares Veracyte and GeneLink”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veracyte	$425.33 million	7.29	-$74.40 million	($0.15)	-266.67
GeneLink	N/A	N/A	N/A	N/A	N/A

GeneLink has lower revenue, but higher earnings than Veracyte.

Profitability

This table compares Veracyte and GeneLink’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veracyte	-2.18%	3.02%	2.80%
GeneLink	N/A	N/A	N/A

Volatility & Risk

Veracyte has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, GeneLink has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Veracyte and GeneLink, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veracyte	1	1	7	0	2.67
GeneLink	0	0	0	0	0.00

Veracyte currently has a consensus target price of $41.13, indicating a potential upside of 2.81%. Given Veracyte’s stronger consensus rating and higher possible upside, research analysts clearly believe Veracyte is more favorable than GeneLink.

Summary

Veracyte beats GeneLink on 7 of the 8 factors compared between the two stocks.

About Veracyte

Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.

About GeneLink

GeneLink, Inc. offers 12-gene DNA assessment services. The company also provides health custom supplements. In addition, it formulates a line of skin care products. The company was founded in 1994 and is based in Orlando, Florida.