Financial Review: Bio-Rad Laboratories (NYSE:BIO) & Sanuwave Health (NASDAQ:SNWV)

Sanuwave Health (NASDAQ:SNWV) and Bio-Rad Laboratories (NYSE:BIO) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Sanuwave Health has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Bio-Rad Laboratories has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sanuwave Health and Bio-Rad Laboratories”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanuwave Health	$32.63 million	6.95	-$31.37 million	($1.30)	-20.33
Bio-Rad Laboratories	$2.57 billion	3.15	-$1.84 billion	($24.31)	-12.32

Sanuwave Health has higher earnings, but lower revenue than Bio-Rad Laboratories. Sanuwave Health is trading at a lower price-to-earnings ratio than Bio-Rad Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sanuwave Health and Bio-Rad Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanuwave Health	1	0	1	1	2.67
Bio-Rad Laboratories	1	2	3	0	2.33

Sanuwave Health currently has a consensus price target of $54.00, suggesting a potential upside of 104.31%. Bio-Rad Laboratories has a consensus price target of $358.50, suggesting a potential upside of 19.73%. Given Sanuwave Health’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sanuwave Health is more favorable than Bio-Rad Laboratories.

Institutional & Insider Ownership

42.5% of Sanuwave Health shares are held by institutional investors. Comparatively, 65.2% of Bio-Rad Laboratories shares are held by institutional investors. 14.9% of Sanuwave Health shares are held by insiders. Comparatively, 17.8% of Bio-Rad Laboratories shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sanuwave Health and Bio-Rad Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanuwave Health	-17.06%	N/A	-25.20%
Bio-Rad Laboratories	-26.43%	4.19%	2.93%

Summary

Sanuwave Health beats Bio-Rad Laboratories on 8 of the 15 factors compared between the two stocks.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc. manufactures and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. It operates through two segments, Life Science and Clinical Diagnostics. The company develops, manufactures, and markets instruments, systems, reagents, and consumables to separate, purify, characterize, and quantitate biological materials such as cells, proteins, and nucleic acids for proteomics, genomics, biopharmaceutical production, cellular biology, and food safety markets. It also designs, manufactures, markets, and supports test systems, informatics systems, test kits, and specialized quality controls for hospitals, diagnostic reference, transfusion, and physician office laboratories. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.