KORU Medical Systems (NASDAQ:KRMD) versus Biomerica (NASDAQ:BMRA) Financial Comparison

KORU Medical Systems (NASDAQ:KRMD) and Biomerica (NASDAQ:BMRA) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Risk and Volatility

KORU Medical Systems has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Biomerica has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Earnings & Valuation

This table compares KORU Medical Systems and Biomerica”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KORU Medical Systems	$41.13 million	3.34	-$2.64 million	($0.04)	-74.75
Biomerica	$4.45 million	1.19	-$3.78 million	($1.64)	-1.05

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

Analyst Recommendations

This is a breakdown of current ratings for KORU Medical Systems and Biomerica, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KORU Medical Systems	1	0	4	1	2.83
Biomerica	1	0	0	0	1.00

KORU Medical Systems presently has a consensus target price of $7.00, suggesting a potential upside of 134.11%. Biomerica has a consensus target price of $9.00, suggesting a potential upside of 423.26%. Given Biomerica’s higher probable upside, analysts clearly believe Biomerica is more favorable than KORU Medical Systems.

Institutional and Insider Ownership

58.6% of KORU Medical Systems shares are owned by institutional investors. Comparatively, 22.3% of Biomerica shares are owned by institutional investors. 18.5% of KORU Medical Systems shares are owned by insiders. Comparatively, 12.3% of Biomerica shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KORU Medical Systems	-4.03%	-10.63%	-6.51%
Biomerica	-115.50%	-142.81%	-77.83%

Summary

KORU Medical Systems beats Biomerica on 13 of the 15 factors compared between the two stocks.

About KORU Medical Systems

KORU Medical Systems, Inc. develops and manufactures medical devices and supplies in the United States and internationally. It offers the freedom infusion systems to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Its products include the FREEDOM60 syringe infusion system, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing products. The company was incorporated in 1980 and is based in Mahwah, 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.