Financial Analysis: Exactech (EXAC) & Invacare Corporation (IVC)
Exactech (NASDAQ: EXAC) and Invacare Corporation (NYSE:IVC) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
This table compares Exactech and Invacare Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
64.6% of Exactech shares are held by institutional investors. 28.3% of Exactech shares are held by company insiders. Comparatively, 2.6% of Invacare Corporation shares are held 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.
This is a breakdown of recent recommendations and price targets for Exactech and Invacare Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Invacare Corporation has a consensus target price of $14.50, indicating a potential downside of 0.68%. Given Invacare Corporation’s higher probable upside, analysts plainly believe Invacare Corporation is more favorable than Exactech.
Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Exactech does not pay a dividend. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Exactech and Invacare Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Exactech||$262.96 million||1.80||$43.51 million||$0.04||826.46|
|Invacare Corporation||$980.12 million||0.49||-$13.64 million||($1.93)||-7.56|
Exactech has higher revenue, but lower earnings than Invacare Corporation. Invacare Corporation is trading at a lower price-to-earnings ratio than Exactech, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Exactech has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Invacare Corporation has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500.
Exactech beats Invacare Corporation on 9 of the 15 factors compared between the two stocks.
Exactech, Inc. develops, manufactures, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic services to hospitals and physicians. The Company’s segments include knee, hip, biologics and spine, extremity and other products. Its other products segment includes miscellaneous sales categories, such as bone cement, instrument rental fees, shipping charges and other product lines. The Company distributes joint replacement systems, including knee, hip, spine and extremity implant systems, and biologic products and services and bone cement materials used in orthopedic surgery and dental procedures. The Exactech Knee System provides solutions for partial, primary and revision total knee arthroplasty. Its hip solutions address the continuum of hip arthroplasty. It manufactures and distributes various products and services designed for the healing and regeneration of bone and soft tissue, including products, which contain human allograft.
About Invacare Corporation
Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.
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