Bionano Story

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BNGO -- USA Stock  

USD 8.43  1.48  21.30%

As many rational traders are trying to avoid healthcare space, it makes sense to outline Bionano Genomics a little further and understand how it stands against Dermtech and other similar entities. We are going to inspect some of the competitive aspects of both Bionano and Dermtech.
Published over two weeks ago
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Are Dermtech (NASDAQ:DMTK) institutional investors switching to Bionano (NASDAQ:BNGO)?
By analyzing existing basic indicators between Bionano Genomics and Dermtech, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dermtech with a short position in Bionano Genomics. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bionano Genomics has an asset utilization ratio of 39.36 percent. This suggests that the company is making $0.39 for each dollar of assets. An increasing asset utilization means that Bionano Genomics is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Bionano or Dermtech is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Bionano Genomics's Liquidity

Bionano Genomics financial leverage refers to using borrowed capital as a funding source to finance Bionano Genomics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bionano Genomics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bionano Genomics's total debt and its cash.

Correlation Between Bionano and Dermtech

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Bionano Genomics together with similar or unrelated positions with a negative correlation. For example, you can also add Dermtech to your portfolio. If Dermtech is not perfectly correlated to Bionano Genomics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Bionano Genomics for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between BNGO and DMTK for more information.

Note

Are you currently holding both Bionano Genomics and Dermtech in your portfolio? Please note if you are using this as a pair-trade strategy between Bionano Genomics and Dermtech, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by Chaubey Alka of 300000 shares of Bionano Genomics subject to Rule 16b-3

Legal trades by Bionano Genomics insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Bionano insider trading alert for grant of stock option (right to buy) by Chaubey Alka, Chief Medical Officer, on 11th of October 2020. This event was filed by Bionano Genomics Inc with SEC on 2020-09-03. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Bionano Genomics Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Bionano Genomics revenue. Based on the latest financial disclosure, Bionano Genomics reported 7.3 M of revenue. This is 99.9% lower than that of the Healthcare sector and 99.63% lower than that of the Diagnostics & Research industry. The revenue for all United States stocks is 99.92% higher than that of the company. As for Dermtech we see revenue of 5.35 M, which is 99.73% lower than that of the Diagnostics & Research

Sector
B
BNGO7.3 Million0.37
Sector1.98 Billion99.37
DMTK5.35 Million0.27

Our perspective of the latest Bionano Genomics rise

Bionano Genomics latest information ratio surges over 0.24. As of the 3rd of January, Bionano Genomics shows the Mean Deviation of 6.75, risk adjusted performance of 0.2675, and Downside Deviation of 3.64. Bionano Genomics technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Bionano Genomics, which can be compared to its rivals. Please confirm Bionano Genomics coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Bionano Genomics is priced correctly, providing market reflects its regular price of 3.08 per share. Given that Bionano Genomics has jensen alpha of 3.15, we suggest you to validate Bionano Genomics's prevailing market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Bionano Genomics Investment

Whereas other companies under the diagnostics & research industry are still a bit expensive, Bionano Genomics may offer a potential longer-term growth to institutional investors. The bottom line, as of the 3rd of January 2021, we believe that Bionano Genomics is currently overvalued with quite high odds of distress in the next two years. Our primary 30 days 'Buy-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Bionano Genomics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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