Echo Therapeutics (OTCMKTS:ECTE) and CHF Solutions (NASDAQ:CHFS) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Volatility and Risk
Echo Therapeutics has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, CHF Solutions has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.
Earnings & Valuation
This table compares Echo Therapeutics and CHF Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echo Therapeutics||N/A||N/A||-$22.19 million||N/A||N/A|
|CHF Solutions||$3.55 million||2.35||-$13.38 million||($37.15)||-0.03|
CHF Solutions has higher revenue and earnings than Echo Therapeutics.
This is a summary of current ratings for Echo Therapeutics and CHF Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CHF Solutions has a consensus price target of $3.30, suggesting a potential upside of 179.66%. Given CHF Solutions’ higher probable upside, analysts clearly believe CHF Solutions is more favorable than Echo Therapeutics.
This table compares Echo Therapeutics and CHF Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
20.6% of CHF Solutions shares are held by institutional investors. 7.0% of Echo Therapeutics shares are held by insiders. Comparatively, 3.5% of CHF Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
CHF Solutions beats Echo Therapeutics on 6 of the 10 factors compared between the two stocks.
About Echo Therapeutics
Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.
About CHF Solutions
CHF Solutions, Inc., an early-stage medical device company, develops cardiac and coronary disease products primarily in the United States. The company focuses on commercializing the Aquadex FlexFlow system, which is indicated for temporary ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization. It offers Aquadex FlexFlow consoles and the related disposable products in Singapore and Hong Kong. The company was formerly known as Sunshine Heart, Inc. and changed its name to CHF Solutions, Inc. in May 2017. CHF Solutions, Inc. was founded in 1999 and is based in Eden Prairie, Minnesota.
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