Cytosorbents (NASDAQ:CTSO) versus Biomerica (NASDAQ:BMRA) Financial Analysis

Cytosorbents (NASDAQ:CTSO) and Biomerica (NASDAQ:BMRA) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares Cytosorbents and Biomerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cytosorbents	-48.94%	-431.65%	-41.94%
Biomerica	-84.79%	-97.19%	-61.57%

Risk and Volatility

Cytosorbents has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Biomerica has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Institutional and Insider Ownership

32.9% of Cytosorbents shares are held by institutional investors. Comparatively, 22.3% of Biomerica shares are held by institutional investors. 7.8% of Cytosorbents shares are held by insiders. Comparatively, 18.0% of Biomerica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cytosorbents and Biomerica”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cytosorbents	$37.06 million	0.60	-$8.20 million	($0.29)	-1.21
Biomerica	$4.45 million	1.60	-$3.78 million	($1.27)	-1.82

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

Analyst Recommendations

This is a summary of current recommendations for Cytosorbents and Biomerica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cytosorbents	1	1	1	0	2.00
Biomerica	1	0	0	0	1.00

Cytosorbents presently has a consensus price target of $5.38, indicating a potential upside of 1,435.28%. Biomerica has a consensus price target of $9.00, indicating a potential upside of 289.61%. Given Cytosorbents’ stronger consensus rating and higher possible upside, analysts clearly believe Cytosorbents is more favorable than Biomerica.

Summary

Cytosorbents beats Biomerica on 10 of the 14 factors compared between the two stocks.

About Cytosorbents

Cytosorbents Corporation engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology in the United States, Germany, and internationally. Its flagship product is CytoSorb, an extracorporeal cytokine adsorber for adjunctive therapy in the treatment of sepsis, adjunctive therapy in other critical care applications, prevention, and treatment of perioperative complications, and maintaining or enhancing the quality of solid organs harvested from donors for organ transplant; and offers VetResQ, a device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. The company also develops CytoSorb-XL, a device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients, and removal of anti-A and anti-B blood group antibodies from whole blood and plasma; K+ontrol for treatment of severe hyperkalemia in patients with life-threatening conditions; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. In addition, it develops BetaSorb, a device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; DrugSorb, a device to remove drugs and chemicals from the blood; and DrugSorb-ATR, an antithrombotic removal system. The company was formerly known as MedaSorb Technologies Corporation and changed its name to Cytosorbents Corporation in May 2010. Cytosorbents Corporation was founded in 1997 and is headquartered in Princeton, New Jersey.

About Biomerica

Biomerica, Inc., a biomedical technology company, develops, patents, manufactures, and markets diagnostic and therapeutic products for the detection and/or treatment of medical conditions and diseases worldwide. The company's diagnostic test kits are used to analyze blood, urine, nasal or fecal specimens from patients in the diagnosis of various diseases, food intolerances, and other medical complications; or to measure bacteria, hormones, antibodies, antigens, or other substances which may exist in the human body, stools, or blood in extremely small concentrations. It primarily sells its products for gastrointestinal diseases, food intolerances, and various esoteric tests at the physicians' offices and over-the-counter drugstores, and hospital/clinical laboratories. The company is also developing InFoods IBS, that uses a simple blood sample to identify patient-specific foods which may alleviate irritable bowel syndrome symptoms; and H. Pylori diagnostic test that indicates if a patient is infected with the H. Pylori bacteria. In addition, it develops products to indicate if a person has been infected by COVID-19. Biomerica, Inc. was incorporated in 1971 and is headquartered in Irvine, California.