Better Buy: Illumina, Inc. vs. Pacific Biosciences

Rapid advances in the ability to quickly and cheaply sequence DNA and RNA are fueling research in cancer, immunology, complex diseases, forensics, agriculture, and many other areas, while clinical uses for gene sequencing are expanding rapidly. The demand for tools that can help scientists and doctors peer into the genetic codes of people, animals, plants, tumors, and microbes should continue to grow for many years.

Illumina (NASDAQ: ILMN) and Pacific Biosciences of California (NASDAQ: PACB) both make gene sequencing equipment and make money by selling instruments and the consumables that are required every time the machines are used. Which of these two companies is the best place to invest new money today?

The undisputed leader in gene sequencers is Illumina. Investors looking for a health technology company that dominates a growing market should look at this supplier of picks and shovels for the genomic revolution. Illumina has been at the forefront of what is called Next-Generation Sequencing technology. The company introduced the HiSeq 2000 in 2010, which was able to sequence the human genome for $10,000, and the HiSeq X Ten in 2014, which brought the cost down to $1,000.

Source: Fool.com