Novadaq Technologies (NASDAQ: NVDQ) and Analogic Corporation (NASDAQ:ALOG) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Novadaq Technologies -71.97% -49.93% -41.47%
Analogic Corporation -7.97% 6.75% 5.73%

Valuation and Earnings

This table compares Novadaq Technologies and Analogic Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Novadaq Technologies $83.42 million 8.10 -$47.39 million ($1.04) -11.24
Analogic Corporation $512.87 million 1.72 $65.24 million ($3.29) -21.49

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

Insider and Institutional Ownership

88.5% of Novadaq Technologies shares are owned by institutional investors. 1.2% of Analogic Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Novadaq Technologies and Analogic Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novadaq Technologies 0 11 2 0 2.15
Analogic Corporation 0 2 1 0 2.33

Novadaq Technologies presently has a consensus price target of $11.86, suggesting a potential upside of 1.43%. Analogic Corporation has a consensus price target of $91.00, suggesting a potential upside of 28.71%. Given Analogic Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Analogic Corporation is more favorable than Novadaq Technologies.

Volatility and Risk

Novadaq Technologies has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Analogic Corporation has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Dividends

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

Summary

Analogic Corporation beats Novadaq Technologies on 11 of the 15 factors compared between the two stocks.

Novadaq Technologies Company Profile

NOVADAQ Technologies Inc. is a medical device company. The Company primarily develops, manufactures and markets real-time fluorescence imaging products that are designed for use by surgeons in the operating room and other clinical settings where open and minimally invasive surgery or interventional procedures are performed. The Company’s SPY fluorescence imaging technology platform (SPY Fluorescence Imaging) provides clinically relevant anatomic and physiologic images of blood flow in vessels and micro-vessels during a range of surgical and outpatient procedures performed in the operating room or clinic. The SPY Fluorescence Imaging platform can be used to develop imaging devices specifically designed to meet the needs of different surgeons and other healthcare providers and the specialty procedures they perform. SPY images enable physicians treating life-threatening illnesses, such as breast, head and neck, colon, complex hernias, diabetes and certain cardiovascular diseases.

Analogic Corporation Company Profile

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.

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