Novadaq Technologies (NASDAQ: NVDQ) and NxStage Medical (NASDAQ:NXTM) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Volatility & Risk
Novadaq Technologies has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, NxStage Medical has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.
Insider & Institutional Ownership
75.4% of Novadaq Technologies shares are owned by institutional investors. Comparatively, 93.2% of NxStage Medical shares are owned by institutional investors. 4.7% of NxStage Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Novadaq Technologies and NxStage Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Novadaq Technologies currently has a consensus price target of $11.86, suggesting a potential upside of 0.91%. NxStage Medical has a consensus price target of $29.86, suggesting a potential upside of 7.44%. Given NxStage Medical’s higher possible upside, analysts clearly believe NxStage Medical is more favorable than Novadaq Technologies.
This table compares Novadaq Technologies and NxStage Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Novadaq Technologies and NxStage Medical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Novadaq Technologies||$83.87 million||8.10||-$50.47 million||($0.96)||-12.24|
|NxStage Medical||$378.01 million||4.85||$14.26 million||($0.07)||-397.00|
NxStage Medical has higher revenue and earnings than Novadaq Technologies. NxStage Medical is trading at a lower price-to-earnings ratio than Novadaq Technologies, indicating that it is currently the more affordable of the two stocks.
NxStage Medical beats Novadaq Technologies on 9 of the 13 factors compared between the two stocks.
Novadaq Technologies Company Profile
NOVADAQ Technologies Inc. is a medical device company. The Company primarily develops, manufactures and markets real-time fluorescence imaging products that are designed for use by surgeons in the operating room and other clinical settings where open and minimally invasive surgery or interventional procedures are performed. The Company’s SPY fluorescence imaging technology platform (SPY Fluorescence Imaging) provides clinically relevant anatomic and physiologic images of blood flow in vessels and micro-vessels during a range of surgical and outpatient procedures performed in the operating room or clinic. The SPY Fluorescence Imaging platform can be used to develop imaging devices specifically designed to meet the needs of different surgeons and other healthcare providers and the specialty procedures they perform. SPY images enable physicians treating life-threatening illnesses, such as breast, head and neck, colon, complex hernias, diabetes and certain cardiovascular diseases.
NxStage Medical Company Profile
NxStage Medical, Inc. is a medical technology company. The Company develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure. It operates through three segments. The System One segment includes revenues from the sale and rental of the System One and PureFlow SL dialysate preparation equipment and the sale of disposable products in the home and critical care markets. The In-Center segment includes revenues from the sale of blood tubing sets and needles for hemodialysis, primarily for the treatment of end-stage renal disease patients at dialysis clinics, and needles for apheresis. It markets extracorporeal disposable products under the Medisystems brand. The Services segment includes revenues from dialysis services provided to patients at its NxStage Kidney Care dialysis centers. Its product offerings include Home Dialysis, Next-Generation Hemodialysis System, Critical Care, Next-Generation Critical Care System and In-Center.
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