Vermillion (NASDAQ: VRML) and Digiliti Money (OTCMKTS:DGLT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Vermillion and Digiliti Money, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vermillion 0 0 1 0 3.00
Digiliti Money 0 0 1 0 3.00

Vermillion currently has a consensus target price of $2.25, indicating a potential upside of 57.34%. Digiliti Money has a consensus target price of $6.00, indicating a potential upside of 2,627.27%. Given Digiliti Money’s higher possible upside, analysts plainly believe Digiliti Money is more favorable than Vermillion.

Valuation and Earnings

This table compares Vermillion and Digiliti Money’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Vermillion $2.64 million 32.50 -$14.96 million ($0.20) -7.15
Digiliti Money $7.97 million 0.27 -$15.16 million N/A N/A

Vermillion has higher revenue, but lower earnings than Digiliti Money.

Profitability

This table compares Vermillion and Digiliti Money’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vermillion -332.10% -200.44% -114.50%
Digiliti Money -147.73% N/A -199.21%

Insider & Institutional Ownership

33.8% of Vermillion shares are owned by institutional investors. Comparatively, 6.2% of Digiliti Money shares are owned by institutional investors. 3.7% of Vermillion shares are owned by insiders. Comparatively, 50.9% of Digiliti Money shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Digiliti Money beats Vermillion on 5 of the 9 factors compared between the two stocks.

Vermillion Company Profile

Vermillion, Inc. is a diagnostic service and bio-analytic solutions provider. The Company is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease. It sells OVA1 risk of malignancy test for pelvic mass disease (OVA1). OVA1 is a blood test designed to, in addition to a physician’s clinical assessment of a woman with a pelvic mass, identify women who are at risk of having a malignant ovarian tumor prior to planned surgery. It developed OVA1 through pre-clinical studies in collaboration with various academic medical centers encompassing over 2,500 clinical samples. OVA1 is validated in a multi-center clinical trial encompassing approximately 30 sites reflective of the diverse nature of the clinical centers, at which ovarian adnexal masses are evaluated. Its ASPiRA LABS is a laboratory that provides diagnostic services using a biomarker-based diagnostic algorithm to inform clinical decision making and personalized treatment plans.

Digiliti Money Company Profile

Digiliti Money Group, Inc., formerly Digiliti Money, Inc., is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders.

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