Analogic Corporation (NASDAQ: ALOG) and NxStage Medical (NASDAQ:NXTM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Analogic Corporation and NxStage Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Analogic Corporation $512.87 million 1.75 $65.24 million ($3.29) -21.88
NxStage Medical $374.00 million 4.29 $14.68 million ($0.07) -348.24

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

Dividends

Analogic Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. NxStage Medical does not pay a dividend. Analogic Corporation pays out -12.2% of its earnings in the form of a dividend.

Profitability

This table compares Analogic Corporation and NxStage Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Analogic Corporation -7.97% 6.75% 5.73%
NxStage Medical -1.25% -2.31% -1.47%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Analogic Corporation and NxStage Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Analogic Corporation 0 2 1 0 2.33
NxStage Medical 0 1 4 0 2.80

Analogic Corporation currently has a consensus target price of $91.00, indicating a potential upside of 26.39%. NxStage Medical has a consensus target price of $31.80, indicating a potential upside of 30.43%. Given NxStage Medical’s stronger consensus rating and higher probable upside, analysts plainly believe NxStage Medical is more favorable than Analogic Corporation.

Insider and Institutional Ownership

95.3% of NxStage Medical shares are owned by institutional investors. 1.2% of Analogic Corporation shares are owned by insiders. Comparatively, 4.7% of NxStage Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Analogic Corporation has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, NxStage Medical has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Summary

NxStage Medical beats Analogic Corporation on 8 of the 15 factors compared between the two stocks.

About Analogic Corporation

Analogic Corporation designs, manufactures and commercializes guidance, diagnostic imaging and threat detection technologies. The Company operates through three segments: Medical Imaging, Ultrasound, and Security and Detection. The Company’s Medical Imaging segment provides medical imaging systems and subsystems for computed tomography (CT), magnetic resonance imaging (MRI) and high-resolution digital mammography. The Company’s Ultrasound business segment provides ultrasound procedure guidance systems for the urology and surgery markets. The Company’s Security and Detection segment designs and manufactures automated threat detection systems for aviation baggage inspection applications utilizing medical CT technology and systems used for deoxyribonucleic acid (DNA) analysis for law enforcement and government agencies.

About NxStage Medical

NxStage Medical, Inc. is a medical technology company. The Company develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure. It operates through three segments. The System One segment includes revenues from the sale and rental of the System One and PureFlow SL dialysate preparation equipment and the sale of disposable products in the home and critical care markets. The In-Center segment includes revenues from the sale of blood tubing sets and needles for hemodialysis, primarily for the treatment of end-stage renal disease patients at dialysis clinics, and needles for apheresis. It markets extracorporeal disposable products under the Medisystems brand. The Services segment includes revenues from dialysis services provided to patients at its NxStage Kidney Care dialysis centers. Its product offerings include Home Dialysis, Next-Generation Hemodialysis System, Critical Care, Next-Generation Critical Care System and In-Center.

Receive News & Ratings for Analogic Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Analogic Corporation and related companies with MarketBeat.com's FREE daily email newsletter.