Cerus Corporation (NASDAQ: CERS) and Endologix (NASDAQ:ELGX) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitabiliy, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Cerus Corporation and Endologix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerus Corporation -168.39% -104.79% -60.71%
Endologix -66.43% -48.92% -16.16%

Insider and Institutional Ownership

65.3% of Cerus Corporation shares are owned by institutional investors. 7.4% of Cerus Corporation shares are owned by company insiders. Comparatively, 4.1% of Endologix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Cerus Corporation has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Endologix has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cerus Corporation and Endologix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerus Corporation 0 0 5 0 3.00
Endologix 0 9 2 0 2.18

Cerus Corporation presently has a consensus target price of $7.80, suggesting a potential upside of 245.13%. Endologix has a consensus target price of $7.55, suggesting a potential upside of 49.50%. Given Cerus Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Cerus Corporation is more favorable than Endologix.

Valuation and Earnings

This table compares Cerus Corporation and Endologix’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cerus Corporation $36.56 million 6.43 -$62.24 million ($0.63) -3.59
Endologix $193.17 million 2.17 -$61.29 million ($1.55) -3.26

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

Summary

Cerus Corporation beats Endologix on 8 of the 13 factors compared between the two stocks.

Cerus Corporation Company Profile

Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.

Endologix Company Profile

Endologix, Inc. is engaged in developing, manufacturing, marketing and selling medical devices for the treatment of aortic disorders. The Company’s products are intended for the treatment of abdominal aortic aneurysms (AAA). The AAA products are built on one of two platforms, including traditional minimally invasive endovascular repair (EVAR) or endovascular sealing (EVAS), its solution for sealing the aneurysm sac while maintaining blood flow through two blood flow lumens. The EVAR products include the Endologix AFX Endovascular AAA System (AFX), the VELA Proximal Endograft (VELA) and the Endologix Powerlink with Intuitrak Delivery System (Intuitrak). The EVAS product is the Nellix EndoVascular Aneurysm Sealing System (Nellix EVAS System). It offers accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, snares, and catheter introducer sheaths.

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