Financial Analysis: Enovis (NYSE:ENOV) vs. MSP Recovery (NASDAQ:MSPR)

Enovis (NYSE:ENOV) and MSP Recovery (NASDAQ:MSPR) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Institutional & Insider Ownership

98.4% of Enovis shares are held by institutional investors. Comparatively, 3.8% of MSP Recovery shares are held by institutional investors. 2.7% of Enovis shares are held by insiders. Comparatively, 50.5% of MSP Recovery shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Enovis and MSP Recovery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovis	1	0	6	0	2.71
MSP Recovery	1	0	0	0	1.00

Enovis presently has a consensus price target of $51.17, suggesting a potential upside of 77.85%. Given Enovis’ stronger consensus rating and higher probable upside, research analysts clearly believe Enovis is more favorable than MSP Recovery.

Valuation & Earnings

This table compares Enovis and MSP Recovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovis	$2.23 billion	0.74	-$825.49 million	($23.66)	-1.22
MSP Recovery	$18.25 million	0.03	-$360.50 million	($522.40)	0.00

MSP Recovery has lower revenue, but higher earnings than Enovis. Enovis is trading at a lower price-to-earnings ratio than MSP Recovery, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Enovis and MSP Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enovis	-37.80%	6.78%	3.73%
MSP Recovery	-7,328.48%	-326.80%	-81.27%

Risk and Volatility

Enovis has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.58, suggesting that its stock price is 358% less volatile than the S&P 500.

Summary

Enovis beats MSP Recovery on 11 of the 14 factors compared between the two stocks.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.

About MSP Recovery

MSP Recovery, Inc. engages in the development of healthcare recoveries and data analytics software. It also focuses on the identification and recoveries of improper payments made by Medicare, Medicaid, and commercial insurance spaces using data and analytics. The company was founded by John H. Ruiz, Frank C. Quesada, and Diana Diaz on July 8, 2014 and is headquartered in Miami, FL.