Mediwound (NASDAQ: MDWD) and 3SBio (NASDAQ:SSRX) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Mediwound and 3SBio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mediwound -904.26% -246.58% -39.43%
3SBio N/A N/A N/A

Risk and Volatility

Mediwound has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500. Comparatively, 3SBio has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mediwound and 3SBio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mediwound 0 0 5 0 3.00
3SBio 0 0 1 0 3.00

Mediwound currently has a consensus price target of $9.80, indicating a potential upside of 113.04%. Given Mediwound’s higher possible upside, equities analysts plainly believe Mediwound is more favorable than 3SBio.

Institutional and Insider Ownership

29.5% of Mediwound shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Mediwound and 3SBio’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mediwound $1.56 million 79.76 -$18.88 million ($0.64) -7.19
3SBio N/A N/A N/A $0.73 22.73

3SBio has lower revenue, but higher earnings than Mediwound. Mediwound is trading at a lower price-to-earnings ratio than 3SBio, indicating that it is currently the more affordable of the two stocks.

Summary

3SBio beats Mediwound on 6 of the 10 factors compared between the two stocks.

About Mediwound

MediWound Ltd. is a biopharmaceutical company. The Company focuses on developing, manufacturing and commercializing therapeutics products in the fields of severe burns, chronic and other hard-to-heal wounds, connective tissue disorders and other indications. The Company’s product, NexoBrid, is indicated for the removal of dead or damaged tissue, known as eschar, in adults with deep partial- and full-thickness thermal burns, also referred to as severe burns. The Company sells NexoBrid in Europe and Israel. NexoBrid is a topically-applied product that removes eschar in four hours without harming the surrounding healthy tissues. Its product, EscharEx, is a topical biological drug, which is being developed for debridement of chronic and other hard-to-heal wounds. NexoBrid and EscharEx are based on its proteolytic enzyme technology. The Company is also developing an injectable product based on its proteolytic enzyme technology for connective tissue pathologies and indications.

About 3SBio

3SBio Inc. is a biotechnology company in the People’s Republic of China with research and development, manufacturing, and marketing capabilities focusing on bio-pharmaceutical products. The Company recombinant, or genetically engineered, protein-based products and product candidates are designed to address markets with unmet medical needs in nephrology, oncology, supportive cancer care, inflammation and infectious diseases. Its principal products are EPIAO and TPIAO. In addition, it has two legacy products, Intefen and Inleusin; and an in-licensed product, Iron Sucrose Supplement. The Company focuses on its research and development efforts on both novel and validated protein-based therapeutics for the treatment of diseases in the areas of nephrology, oncology, supportive cancer care, inflammation and infectious diseases, and other selected areas. In May 2013, the Company merged with Decade Sunshine Limited and Decade Sunshine Merger Sub.

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