Reviewing Adagio Medical (NASDAQ:ADGM) and Nihon Kohden (OTCMKTS:NHNKY)

Nihon Kohden (OTCMKTS:NHNKYGet Free Report) and Adagio Medical (NASDAQ:ADGMGet Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Risk and Volatility

Nihon Kohden has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Adagio Medical has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Earnings and Valuation

This table compares Nihon Kohden and Adagio Medical”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nihon Kohden $1.48 billion 1.37 $93.05 million $0.73 16.25
Adagio Medical $600,000.00 23.84 -$75.04 million ($1.52) -0.61

Nihon Kohden has higher revenue and earnings than Adagio Medical. Adagio Medical is trading at a lower price-to-earnings ratio than Nihon Kohden, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of Nihon Kohden shares are held by institutional investors. Comparatively, 48.1% of Adagio Medical shares are held by institutional investors. 5.2% of Adagio Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Nihon Kohden and Adagio Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nihon Kohden 7.78% 9.28% 6.60%
Adagio Medical N/A -791.01% -199.58%

Analyst Ratings

This is a summary of recent recommendations and price targets for Nihon Kohden and Adagio Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nihon Kohden 0 0 0 1 4.00
Adagio Medical 1 0 1 0 2.00

Adagio Medical has a consensus target price of $4.00, suggesting a potential upside of 330.11%. Given Adagio Medical’s higher probable upside, analysts plainly believe Adagio Medical is more favorable than Nihon Kohden.

Summary

Nihon Kohden beats Adagio Medical on 10 of the 15 factors compared between the two stocks.

About Nihon Kohden

(Get Free Report)

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

About Adagio Medical

(Get Free Report)

Adagio Medical Holdings, Inc., a developmental stage medical device company, focuses on the development and commercialization of ablation technologies for the treatment of cardiac arrhythmias. It offers treatment for cardiac arrhythmias, including atrial fibrillation, atrial flutter, and ventricular tachycardia. The company’s product portfolio includes iCLAS atrial ultra-low temperature cryoablation (ULTC) catheter and accessories; vCLAS ventricular ULTC catheter; and Cryopulse atrial pulsed-field cryoablation catheter and accessories. The company is based in Laguna Hills, California.

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