Cepheid (NASDAQ: CPHD) and Vascular Solutions (NASDAQ:VASC) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitabiliy.

Insider and Institutional Ownership

95.8% of Cepheid shares are owned by institutional investors. Comparatively, 80.2% of Vascular Solutions shares are owned by institutional investors. 4.2% of Cepheid shares are owned by company insiders. Comparatively, 6.9% of Vascular Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Cepheid has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Vascular Solutions has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cepheid and Vascular Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cepheid N/A N/A N/A ($0.69) -76.74
Vascular Solutions N/A N/A N/A $0.70 80.00

Cepheid is trading at a lower price-to-earnings ratio than Vascular Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cepheid and Vascular Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cepheid 0 11 0 0 2.00
Vascular Solutions 0 4 0 0 2.00

Cepheid currently has a consensus target price of $45.40, indicating a potential downside of 14.26%. Vascular Solutions has a consensus target price of $55.50, indicating a potential downside of 0.89%. Given Vascular Solutions’ higher possible upside, analysts clearly believe Vascular Solutions is more favorable than Cepheid.

Profitability

This table compares Cepheid and Vascular Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cepheid -6.88% -11.54% -5.18%
Vascular Solutions 13.02% 15.78% 14.30%

Summary

Vascular Solutions beats Cepheid on 7 of the 8 factors compared between the two stocks.

Cepheid Company Profile

Cepheid is a molecular diagnostics company. The Company develops, manufactures and markets fully-integrated systems for testing in the Clinical and Non-Clinical markets. The Company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company’s systems integrate these steps and analyze biological samples in test cartridges. Its primary offering is the GeneXpert system, which integrates sample preparation in addition to Deoxyribonucleic acid (DNA) amplification and detection. The GeneXpert system is designed for a range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories. It also offers the SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.

Vascular Solutions Company Profile

Vascular Solutions, Inc. is a medical device company focused on bringing clinically advanced solutions to the market for treating coronary and peripheral vascular disease. The Company’s product line consists of devices and services that are sold to interventional cardiologists, interventional radiologists, electrophysiologists and vein practices around the world. Its products include GuideLiner catheters, Pronto catheters, Vein catheter reprocessing, Micro-introducer kits, Hemostatic patches, Radial access products, Langston catheters and D-Stat Flowable hemostat. The Company’s product portfolio includes a spectrum of over 90 products consisting of approximately 900 stock keeping units (SKUs) covering an array of blood clotting devices, extraction catheters, access catheters, guide extension catheters, micro-introducer kits, guidewires, snare and retrieval devices, a reprocessing service for radiofrequency catheters and a laser and procedure kits for the treatment of varicose veins.

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