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How Do Fulgent Genetics and Invitae Stack Up Against Each Other?

By Keith Speights and Brian Orelli, PhD - Mar 13, 2021 at 7:01AM

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These two genetic testing companies have different approaches.

Genetic testing is a hot market right now. But some of the companies involved in genetic testing have very different business models. In this Motley Fool Live video recorded on March 3, 2021, contributors Keith Speights and Brian Orelli address a viewer's question about how two prominent genetic testing companies, Fulgent Genetics (FLGT 0.66%) and Invitae (NVTA 1.65%), stack up against each other.

Brian Orelli: Can we explain the difference between Fulgent and Invitae, they're both doing genetic testing? The way I think about it is, Invitae is more catered toward the consumer side, where Fulgent is more catered toward the doctor side.

So Fulgent is mostly doing tests that are from doctors where Invitae is also doing tests from doctors and has really gotten into the consumer side of the business and trying to get tests that are specifically designed for exactly where a patient is.

Patients may not want to know everything about their genetic information, they may want to know specifically, we're about to have a kid, is there anything we should be worried about combining our two sets of genes or a kid and their baby and they're trying to figure out things that we should be worried about going down the line for the baby or, I have a lot of cancer, in my family so I want a test that's specifically looking at my likelihood of developing cancer in the future.

Keith Speights: In your view, Brian, does either of these stocks especially stand-out from an investing standpoint?

Orelli: I have a hard time valuing Fulgent because they run up so much because they are selling COVID 19 tests. That caused them to run up substantially. I have a really hard time figuring out where that company is eventually going to land and the valuation is difficult.

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Stocks Mentioned

Invitae Stock Quote
$3.69 (1.65%) $0.06
Fulgent Genetics, Inc. Stock Quote
Fulgent Genetics, Inc.
$56.45 (0.66%) $0.37

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