Critical Review: Abaxis (ABAX) & Neovasc Inc (US) (NVCN)
Abaxis (NASDAQ: ABAX) and Neovasc Inc (US) (NASDAQ:NVCN) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
This table compares Abaxis and Neovasc Inc (US)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Neovasc Inc (US)||268.35%||-85.81%||23.39%|
97.2% of Abaxis shares are owned by institutional investors. Comparatively, 19.0% of Neovasc Inc (US) shares are owned by institutional investors. 4.3% of Abaxis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Abaxis and Neovasc Inc (US)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Abaxis||$227.22 million||6.54||$32.71 million||$1.08||60.66|
|Neovasc Inc (US)||$9.51 million||2.66||-$86.49 million||$0.27||1.19|
Abaxis has higher revenue and earnings than Neovasc Inc (US). Neovasc Inc (US) is trading at a lower price-to-earnings ratio than Abaxis, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Abaxis and Neovasc Inc (US), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Neovasc Inc (US)||0||0||4||0||3.00|
Abaxis currently has a consensus price target of $56.63, indicating a potential downside of 13.56%. Neovasc Inc (US) has a consensus price target of $3.35, indicating a potential upside of 946.88%. Given Neovasc Inc (US)’s stronger consensus rating and higher probable upside, analysts plainly believe Neovasc Inc (US) is more favorable than Abaxis.
Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Neovasc Inc (US) does not pay a dividend. Abaxis pays out 59.3% of its earnings in the form of a dividend.
Volatility and Risk
Abaxis has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Neovasc Inc (US) has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Abaxis beats Neovasc Inc (US) on 10 of the 16 factors compared between the two stocks.
Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.
About Neovasc Inc (US)
Neovasc Inc. (Neovasc) is a specialty medical device company. The Company develops, manufactures and markets products for the cardiovascular marketplace. The Company’s segment is the development, manufacture and marketing of medical devices. Its products include the Tiara technology in development for the transcatheter treatment of mitral valve disease, the Neovasc Reducer for the treatment of refractory angina, and tissue products. The Tiara is in preclinical/early clinical stage development to provide a minimally invasive transcatheter device for patients experiencing mitral regurgitation (MR) as a result of mitral heart valve disease. The Reducer is an hourglass-shaped, balloon-expandable, stainless steel, bare metal device, which is implanted in the coronary sinus, creating a restriction in venous outflow from the myocardium (the muscular layer of the heart wall). Neovasc produces Peripatch, a biological tissue product that is manufactured from pericardium.
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