Contrasting Apyx Medical (NASDAQ:APYX) and Biomerica (NASDAQ:BMRA)

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

Analyst Ratings

This is a summary of current ratings and price targets for Apyx Medical and Biomerica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apyx Medical	1	1	4	1	2.71
Biomerica	1	0	0	0	1.00

Apyx Medical presently has a consensus target price of $6.60, suggesting a potential upside of 115.69%. Biomerica has a consensus target price of $9.00, suggesting a potential upside of 258.57%. Given Biomerica’s higher possible upside, analysts clearly believe Biomerica is more favorable than Apyx Medical.

Risk and Volatility

Apyx Medical has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Biomerica has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Apyx Medical	-14.78%	-76.60%	-13.91%
Biomerica	-84.79%	-97.19%	-61.57%

Valuation & Earnings

This table compares Apyx Medical and Biomerica”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apyx Medical	$52.84 million	2.44	-$11.21 million	($0.20)	-15.30
Biomerica	$4.45 million	1.74	-$3.78 million	($1.27)	-1.98

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

Insider & Institutional Ownership

55.3% of Apyx Medical shares are held by institutional investors. Comparatively, 22.3% of Biomerica shares are held by institutional investors. 15.9% of Apyx Medical shares are held by company insiders. Comparatively, 18.0% of Biomerica shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Apyx Medical beats Biomerica on 11 of the 15 factors compared between the two stocks.

About Apyx Medical

Apyx Medical Corporation, an energy technology company, engages in the design, development, and manufacture of medical devices in the United States and internationally. The company operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). It offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. The company's Helium Plasma Technology products are marketed and sold under the Renuvion name in the cosmetic surgery market and under the J-Plasma name in the hospital surgical market. It also develops and manufactures various hand pieces for open and laparoscopic procedures; and OEM generators, as well as related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.

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.