BG Medicine (OTCMKTS: BGMD) and BioTelemetry (NASDAQ:BEAT) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Risk & Volatility

BG Medicine has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, BioTelemetry has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for BG Medicine and BioTelemetry, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BG Medicine 0 0 0 0 N/A
BioTelemetry 1 0 7 0 2.75

BioTelemetry has a consensus target price of $43.50, suggesting a potential upside of 70.25%. Given BioTelemetry’s higher possible upside, analysts plainly believe BioTelemetry is more favorable than BG Medicine.

Insider and Institutional Ownership

77.9% of BioTelemetry shares are held by institutional investors. 6.5% of BG Medicine shares are held by company insiders. Comparatively, 9.6% of BioTelemetry shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares BG Medicine and BioTelemetry’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BG Medicine $1.57 million 0.31 -$5.30 million ($0.74) -0.06
BioTelemetry $208.33 million 3.97 $53.43 million $1.31 19.50

BioTelemetry has higher revenue and earnings than BG Medicine. BG Medicine is trading at a lower price-to-earnings ratio than BioTelemetry, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BG Medicine and BioTelemetry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BG Medicine N/A N/A N/A
BioTelemetry 16.10% 13.66% 8.44%

Summary

BioTelemetry beats BG Medicine on 11 of the 12 factors compared between the two stocks.

BG Medicine Company Profile

BG Medicine, Inc. (BG Medicine) is a commercial-stage diagnostics company. The Company is engaged in commercializing diagnostic products that may be used to help guide the care and management of patients suffering from heart failure and related disorders. The Company’s BGM Galectin-3 Test is an in vitro diagnostic device that employs a manual micro-titer platform to measure galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of chronic heart failure in conjunction with clinical evaluation. The automated galectin-3 tests are being developed and commercialized by its diagnostic instrument manufacturing partners and will be performed on its partners’ automated platforms. The Company’s CardioSCORE test is a multi-analyte biomarker-based blood test that was designed as an aid in the assessment of near-term risk for atherothrombotic cardiovascular events, such as heart attack and ischemic stroke.

BioTelemetry Company Profile

BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).

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