Edap Tms (NASDAQ:EDAP – Get Free Report) and Beta Bionics (NASDAQ:BBNX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
62.7% of Edap Tms shares are held by institutional investors. 0.2% of Edap Tms shares are held by insiders. Comparatively, 5.3% of Beta Bionics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Edap Tms and Beta Bionics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Edap Tms | -41.24% | -100.07% | -37.38% |
| Beta Bionics | -60.27% | -23.00% | -20.55% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Edap Tms | 1 | 2 | 1 | 0 | 2.00 |
| Beta Bionics | 1 | 3 | 7 | 1 | 2.67 |
Edap Tms presently has a consensus target price of $6.00, indicating a potential upside of 80.72%. Beta Bionics has a consensus target price of $22.00, indicating a potential upside of 115.69%. Given Beta Bionics’ stronger consensus rating and higher possible upside, analysts clearly believe Beta Bionics is more favorable than Edap Tms.
Volatility and Risk
Edap Tms has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 5.06, suggesting that its share price is 406% more volatile than the S&P 500.
Valuation & Earnings
This table compares Edap Tms and Beta Bionics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Edap Tms | $70.53 million | 1.76 | -$29.25 million | ($0.77) | -4.31 |
| Beta Bionics | $100.25 million | 4.53 | -$73.20 million | ($1.51) | -6.75 |
Edap Tms has higher earnings, but lower revenue than Beta Bionics. Beta Bionics is trading at a lower price-to-earnings ratio than Edap Tms, indicating that it is currently the more affordable of the two stocks.
Summary
Beta Bionics beats Edap Tms on 10 of the 15 factors compared between the two stocks.
About Edap Tms
EDAP TMS SA is a holding company, which, through its subsidiary, engages in the development, production, and marketing of minimally invasive medical devices for urological diseases. It operates through the High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) segments. The HIFU segment develops, manufactures, and markets devices for the minimally invasive ablation of certain types of localized tumors using HIFU technology. The UDS segment focuses on the development, marketing, manufacturing, and servicing of medical devices for the minimally invasive diagnosis or treatment of urological disorders, mainly urinary stones, and other clinical indications. The company was founded on December 3, 1979 and is headquartered in Vaulx-en-Velin, France.
About Beta Bionics
Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.
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