Contrasting UFP Technologies (NASDAQ:UFPT) and Co-Diagnostics (NASDAQ:CODX)
by Jessica Moore · The Cerbat GemCo-Diagnostics (NASDAQ:CODX – Get Free Report) and UFP Technologies (NASDAQ:UFPT – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Co-Diagnostics and UFP Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Co-Diagnostics | -411.18% | -44.69% | -40.47% |
| UFP Technologies | 11.87% | 17.53% | 12.48% |
Institutional & Insider Ownership
15.0% of Co-Diagnostics shares are owned by institutional investors. Comparatively, 87.3% of UFP Technologies shares are owned by institutional investors. 2.4% of Co-Diagnostics shares are owned by company insiders. Comparatively, 6.2% of UFP Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Co-Diagnostics and UFP Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Co-Diagnostics | $9.14 million | 4.21 | -$35.33 million | ($1.32) | -0.93 |
| UFP Technologies | $400.07 million | 5.28 | $44.92 million | $6.42 | 42.87 |
UFP Technologies has higher revenue and earnings than Co-Diagnostics. Co-Diagnostics is trading at a lower price-to-earnings ratio than UFP Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Co-Diagnostics and UFP Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Co-Diagnostics | 0 | 1 | 0 | 0 | 2.00 |
| UFP Technologies | 0 | 1 | 2 | 0 | 2.67 |
Co-Diagnostics presently has a consensus price target of $1.50, indicating a potential upside of 21.95%. UFP Technologies has a consensus price target of $323.50, indicating a potential upside of 17.55%. Given Co-Diagnostics’ higher possible upside, research analysts clearly believe Co-Diagnostics is more favorable than UFP Technologies.
Risk and Volatility
Co-Diagnostics has a beta of -0.87, suggesting that its share price is 187% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Summary
UFP Technologies beats Co-Diagnostics on 13 of the 14 factors compared between the two stocks.
About Co-Diagnostics
Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.
About UFP Technologies
UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.