Bioventus (NASDAQ:BVS) versus Terumo (OTCMKTS:TRUMY) Critical Analysis

Terumo (OTCMKTS:TRUMY) and Bioventus (NASDAQ:BVS) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

62.9% of Bioventus shares are held by institutional investors. 33.5% of Bioventus shares are held by company 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.

Profitability

This table compares Terumo and Bioventus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terumo	13.83%	10.44%	7.34%
Bioventus	9.36%	28.08%	9.82%

Volatility and Risk

Terumo has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Bioventus has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Terumo and Bioventus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terumo	0	0	0	2	4.00
Bioventus	0	0	6	0	3.00

Bioventus has a consensus price target of $16.80, indicating a potential upside of 27.76%. Given Bioventus’ higher possible upside, analysts clearly believe Bioventus is more favorable than Terumo.

Earnings and Valuation

This table compares Terumo and Bioventus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terumo	$7.52 billion	2.98	$897.03 million	$0.71	21.37
Bioventus	$568.09 million	1.95	$22.73 million	$0.77	17.08

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

Summary

Terumo beats Bioventus on 8 of the 15 factors compared between the two stocks.

About Terumo

Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

About Bioventus

Bioventus Inc. a medical device company, focuses on developing and commercializing clinically treatments that engage and enhance the body’s natural healing process in the United States and internationally. The company’s portfolio of products includes pain treatments, which comprise non-surgical joint pain injection therapies, as well as peripheral nerve stimulation products. Its surgical solutions include bone graft substitutes to fuse and grow bones, enhance results following spinal and other orthopedic surgeries; and ultrasonic medical devices for the use in precise bone sculpting, remove tumors, and tissue debridement. The company’s restorative therapies comprise an ultrasonic bone healing system for fracture care; skin allografts; and products that are used to support healing of chronic wounds, as well as advanced rehabilitation devices designed to help patients regain leg or hand function. It serves physicians spanning the orthopedic continuum, including sports medicine, total joint reconstruction, hand and upper extremities, foot and ankle, podiatric surgery, trauma, spine, and neurosurgery in the physician’s office or clinic, ambulatory surgical centers, or in the hospital setting. The company was founded in 2011 and is headquartered in Durham, North Carolina.