EDAP TMS (NASDAQ: EDAP) and GenMark Diagnostics (NASDAQ:GNMK) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for EDAP TMS and GenMark Diagnostics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EDAP TMS 0 0 1 0 3.00
GenMark Diagnostics 0 0 4 0 3.00

EDAP TMS presently has a consensus price target of $6.50, indicating a potential upside of 118.86%. GenMark Diagnostics has a consensus price target of $14.75, indicating a potential upside of 60.50%. Given EDAP TMS’s higher possible upside, research analysts clearly believe EDAP TMS is more favorable than GenMark Diagnostics.

Insider & Institutional Ownership

9.5% of EDAP TMS shares are owned by institutional investors. 7.5% of GenMark Diagnostics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares EDAP TMS and GenMark Diagnostics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EDAP TMS $43.81 million 1.97 $177,653.00 ($0.01) -296.70
GenMark Diagnostics $50.59 million 9.93 -$49.93 million ($1.21) -7.59

EDAP TMS has higher revenue, but lower earnings than GenMark Diagnostics. EDAP TMS is trading at a lower price-to-earnings ratio than GenMark Diagnostics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

EDAP TMS has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, GenMark Diagnostics has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares EDAP TMS and GenMark Diagnostics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EDAP TMS -0.27% 15.70% 8.24%
GenMark Diagnostics -111.96% -109.89% -60.26%

Summary

EDAP TMS beats GenMark Diagnostics on 8 of the 12 factors compared between the two stocks.

EDAP TMS Company Profile

EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.

GenMark Diagnostics Company Profile

GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.

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