Financial Analysis: Exactech (EXAC) & CONMED Corporation (CNMD)
Exactech (NASDAQ: EXAC) and CONMED Corporation (NASDAQ:CNMD) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
This is a breakdown of current ratings for Exactech and CONMED Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CONMED Corporation has a consensus target price of $49.33, suggesting a potential downside of 4.82%. Given CONMED Corporation’s higher possible upside, analysts plainly believe CONMED Corporation is more favorable than Exactech.
CONMED Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Exactech does not pay a dividend. CONMED Corporation pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Exactech and CONMED Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Exactech||$262.96 million||1.66||$43.51 million||$0.04||761.44|
|CONMED Corporation||$772.61 million||1.87||$123.91 million||$0.56||92.55|
CONMED Corporation has higher revenue and earnings than Exactech. CONMED Corporation is trading at a lower price-to-earnings ratio than Exactech, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
64.6% of Exactech shares are owned by institutional investors. Comparatively, 98.9% of CONMED Corporation shares are owned by institutional investors. 28.3% of Exactech shares are owned by insiders. Comparatively, 2.6% of CONMED Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Exactech and CONMED Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Exactech has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, CONMED Corporation has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
CONMED Corporation beats Exactech on 9 of the 15 factors compared between the two stocks.
Exactech Company Profile
Exactech, Inc. develops, manufactures, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic services to hospitals and physicians. The Company’s segments include knee, hip, biologics and spine, extremity and other products. Its other products segment includes miscellaneous sales categories, such as bone cement, instrument rental fees, shipping charges and other product lines. The Company distributes joint replacement systems, including knee, hip, spine and extremity implant systems, and biologic products and services and bone cement materials used in orthopedic surgery and dental procedures. The Exactech Knee System provides solutions for partial, primary and revision total knee arthroplasty. Its hip solutions address the continuum of hip arthroplasty. It manufactures and distributes various products and services designed for the healing and regeneration of bone and soft tissue, including products, which contain human allograft.
CONMED Corporation Company Profile
CONMED Corporation is a medical technology company. The Company is engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company provides surgical devices and equipment for minimally invasive procedures. The Company’s products are used by surgeons and physicians in a range of specialties, including orthopedics, general surgery, gynecology, neurosurgery and gastroenterology. The Company’s product lines consist of orthopedic surgery, general surgery and surgical visualization. As of December 31, 2016, the Company’s products are distributed domestically directly to over 6,000 hospitals, surgery centers and other healthcare institutions, as well as through medical specialty distributors. The Company’s orthopedic surgery product lines include sports medicine, powered surgical instruments, and sports biologics and tissue. These products are marketed under a range of brands, including Hall, CONMED Linvatec, Concept and Shutt.
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