Dextera Surgical (NASDAQ: DXTR) and Derma Sciences (NASDAQ:DSCI) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dextera Surgical and Derma Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dextera Surgical 0 0 2 0 3.00
Derma Sciences 0 1 0 0 2.00

Dextera Surgical currently has a consensus price target of $0.75, suggesting a potential upside of 147.93%. Given Dextera Surgical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Dextera Surgical is more favorable than Derma Sciences.

Risk and Volatility

Dextera Surgical has a beta of -1.1, meaning that its share price is 210% less volatile than the S&P 500. Comparatively, Derma Sciences has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Dextera Surgical and Derma Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dextera Surgical -441.88% N/A -169.94%
Derma Sciences -20.97% -17.10% -12.43%

Institutional & Insider Ownership

7.8% of Dextera Surgical shares are held by institutional investors. Comparatively, 58.9% of Derma Sciences shares are held by institutional investors. 10.4% of Dextera Surgical shares are held by insiders. Comparatively, 9.9% of Derma Sciences shares are held by 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.

Earnings and Valuation

This table compares Dextera Surgical and Derma Sciences’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dextera Surgical $3.42 million 1.57 -$13.98 million ($1.75) -0.17
Derma Sciences N/A N/A N/A ($0.40) -17.50

Derma Sciences has higher revenue, but lower earnings than Dextera Surgical. Derma Sciences is trading at a lower price-to-earnings ratio than Dextera Surgical, indicating that it is currently the more affordable of the two stocks.

Summary

Dextera Surgical beats Derma Sciences on 6 of the 11 factors compared between the two stocks.

About Dextera Surgical

Dextera Surgical Inc., formerly Cardica, Inc., designs and manufactures stapling devices that enable the advancement of minimally invasive surgical procedures. The Company is engaged in commercializing and developing its MicroCutter 5/80 stapler based on its staple-on-a-strip technology for use by thoracic, pediatric, bariatric, colorectal and general surgeons. Its MicroCutter 5/80 is a commercially available cartridge-based microcutter device with approximately five millimeter shaft diameter, over 80 degrees of articulation, and an approximately 30 millimeter staple line cleared for specified indications for use in the United States, and in the European Union (EU) for a range of indications for use. It designs, manufactures and markets automated anastomotic systems used by surgeons to perform anastomoses during on- or off-pump coronary artery bypass graft procedures and these products include the C-Port xA system, the C-Port Flex A system and the PAS-Port Proximal Anastomosis System.

About Derma Sciences

Derma Sciences, Inc. (Derma Sciences) is a medical device company. The Company operates through two segments: advanced wound care and traditional wound care products. Advanced wound care products principally consist of both novel and otherwise differentiated dressings, devices and skin substitutes designed to promote wound healing and/or prevent infection. The Company’s advanced wound care product line consists of MEDIHONEY, TCC-EZ, AMNIOEXCEL and AMNIOMATRIX, XTRASORB and BIOGUARD. Traditional wound care products principally consist of commodity related dressings, ointments, gauze bandages, adhesive bandages, wound closure strips, catheter fasteners and skin care products. The Company’s traditional wound care product line includes branded gauze sponges and bandages, non-adherent impregnated dressings, retention devices, paste bandages and other compression devices for the medical markets.

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