ConforMIS (NASDAQ: CFMS) and Cerus (NASDAQ:CERS) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares ConforMIS and Cerus’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ConforMIS $79.90 million 1.33 -$57.58 million ($1.34) -1.75
Cerus $39.28 million 10.72 -$62.90 million ($0.59) -6.25

ConforMIS has higher revenue and earnings than Cerus. Cerus is trading at a lower price-to-earnings ratio than ConforMIS, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for ConforMIS and Cerus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConforMIS 0 3 2 0 2.40
Cerus 0 1 4 0 2.80

ConforMIS presently has a consensus target price of $6.13, suggesting a potential upside of 160.64%. Cerus has a consensus target price of $6.60, suggesting a potential upside of 78.86%. Given ConforMIS’s higher possible upside, equities research analysts clearly believe ConforMIS is more favorable than Cerus.

Profitability

This table compares ConforMIS and Cerus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConforMIS -72.70% -76.88% -51.42%
Cerus -159.35% -142.18% -67.72%

Risk & Volatility

ConforMIS has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Cerus has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Institutional & Insider Ownership

36.1% of ConforMIS shares are held by institutional investors. Comparatively, 58.5% of Cerus shares are held by institutional investors. 9.6% of ConforMIS shares are held by insiders. Comparatively, 7.4% of Cerus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ConforMIS beats Cerus on 8 of the 13 factors compared between the two stocks.

ConforMIS Company Profile

ConforMIS, Inc. is a medical technology company. The Company uses its iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants, which are individually sized and shaped, to fit each patient’s anatomy. The Company’s iFit technology platform is applicable to various joints. It offers a line of customized knee implants designed to restore the natural shape of a patient’s knee. It offers iTotal CR, which is a total knee replacement implant. Its iFit technology platform consists of three elements, including iFit Design, its algorithms and computer software that is used to design customized implants and associated single-use patient-specific instrumentation referred to as iJigs, based on computed tomography scans of the patient and to prepare a surgical plan customized for the patient (iView); iFit Printing, which is a three-dimensional printing technology used to manufacture iJigs, and iFit Just-in-Time manufacturing and delivery capabilities.

Cerus Company Profile

Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.

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