Invacare Corporation (NYSE: IVC) and Ocular Therapeutix (NASDAQ:OCUL) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

This table compares Invacare Corporation and Ocular Therapeutix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invacare Corporation -6.42% -12.79% -5.88%
Ocular Therapeutix -3,005.52% -101.03% -69.76%

Valuation & Earnings

This table compares Invacare Corporation and Ocular Therapeutix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invacare Corporation $980.12 million 0.50 -$13.64 million ($1.93) -7.69
Ocular Therapeutix $1.90 million 101.08 -$54.64 million ($2.13) -3.10

Invacare Corporation has higher revenue and earnings than Ocular Therapeutix. Invacare Corporation is trading at a lower price-to-earnings ratio than Ocular Therapeutix, 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 Invacare Corporation and Ocular Therapeutix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invacare Corporation 0 1 2 0 2.67
Ocular Therapeutix 0 2 4 0 2.67

Invacare Corporation presently has a consensus price target of $14.50, suggesting a potential downside of 2.36%. Ocular Therapeutix has a consensus price target of $24.00, suggesting a potential upside of 263.09%. Given Ocular Therapeutix’s higher possible upside, analysts clearly believe Ocular Therapeutix is more favorable than Invacare Corporation.

Institutional & Insider Ownership

53.4% of Ocular Therapeutix shares are owned by institutional investors. 3.2% of Invacare Corporation shares are owned by insiders. Comparatively, 26.1% of Ocular Therapeutix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Invacare Corporation has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Dividends

Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Ocular Therapeutix does not pay a dividend. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend.

Summary

Invacare Corporation beats Ocular Therapeutix on 9 of the 14 factors compared between the two stocks.

Invacare Corporation Company Profile

Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.

Ocular Therapeutix Company Profile

Ocular Therapeutix, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapies for diseases and conditions of the eye using its hydrogel platform technology. The Company’s bioresorbable hydrogel based product candidates are designed to provide sustained delivery of therapeutic agents to the eye. Its lead product candidates are DEXTENZA (dexamethasone insert), for the treatment of post-surgical ocular inflammation and pain, allergic conjunctivitis and dry eye disease, and OTX-TP, for the treatment of glaucoma and ocular hypertension, which are extended-delivery, drug-eluting inserts that are placed into the canaliculus through a natural opening called the punctum located in the inner portion of the eyelid near the nose. It also has an intravitreal hydrogel depot, which is in preclinical development for the treatment of diseases and conditions of the back of the eye, including wet age-related macular degeneration (wet AMD).

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