Alere (NYSE: ALR) and Cogentix Medical (NASDAQ:CGNT) are both advanced medical equipment & technology – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Alere and Cogentix Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alere -16.86% -33.39% -6.72%
Cogentix Medical -35.88% -13.83% -10.53%

Insider and Institutional Ownership

89.3% of Alere shares are held by institutional investors. Comparatively, 12.5% of Cogentix Medical shares are held by institutional investors. 3.7% of Alere shares are held by company insiders. Comparatively, 62.7% of Cogentix Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Alere and Cogentix Medical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Alere N/A N/A N/A ($3.11) -16.40
Cogentix Medical $51.85 million 3.08 -$22.09 million ($0.41) -6.39

Alere has higher revenue, but lower earnings than Cogentix Medical. Alere is trading at a lower price-to-earnings ratio than Cogentix Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Alere and Cogentix Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alere 0 4 0 0 2.00
Cogentix Medical 0 0 2 0 3.00

Alere currently has a consensus target price of $51.00, indicating a potential upside of 0.02%. Cogentix Medical has a consensus target price of $4.50, indicating a potential upside of 71.76%. Given Cogentix Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Cogentix Medical is more favorable than Alere.

Risk and Volatility

Alere has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Cogentix Medical has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Summary

Cogentix Medical beats Alere on 8 of the 11 factors compared between the two stocks.

Alere Company Profile

Alere Inc. is a provider of health information through diagnostic tests. The Company’s segments include professional diagnostics, consumer diagnostics, and corporate and other. The professional diagnostics segment includes an array of diagnostic test products and other in vitro diagnostic tests marketed to medical professionals and laboratories for detection of diseases and conditions within its areas of focus. The consumer diagnostics segment consists primarily of manufacturing operations related to its role as the exclusive manufacturer of products for SPD Swiss Precision Diagnostics (SPD), its joint venture with The Procter & Gamble Company (P&G). The Company’s professional diagnostic solutions allow patients and their healthcare providers to work together to manage patients’ conditions over the continuum of care, from the hospital to home. The Company offers lines of drugs-of-abuse tests, reagent systems and laboratory testing options.

Cogentix Medical Company Profile

Cogentix Medical, Inc. is a global medical device company. The Company designs, develops, manufactures and markets a line of fiber-optic and video endoscopy products under the PrimeSight brand that are used across various surgical specialties in diagnostic and treatment procedures. The Company also offers the Urgent PC Neuromodulation System (Urgent PC Systems), a device that delivers percutaneous tibial nerve stimulation (PTNS), for the office-based treatment of overactive bladder (OAB). The Company also offers Macroplastique Implants, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence that is primarily due to intrinsic sphincter deficiency. The PrimeSight flexible endoscopes are used in conjunction with the sterile, single-use microbial barrier known as the EndoSheath Protective Barrier. The PrimeSight endoscopy line also includes rigid endoscopes and portable peripherals, such as the video system and stroboscopy unit.

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