Analyzing Quidel (QDEL) and BIOLASE (BIOL)

Quidel (NASDAQ: QDEL) and BIOLASE (NASDAQ:BIOL) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Quidel has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, BIOLASE has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Quidel and BIOLASE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quidel 0 0 6 0 3.00
BIOLASE 0 0 1 0 3.00

Quidel currently has a consensus price target of $50.00, suggesting a potential upside of 6.63%. BIOLASE has a consensus price target of $2.50, suggesting a potential upside of 455.56%. Given BIOLASE’s higher probable upside, analysts plainly believe BIOLASE is more favorable than Quidel.

Valuation & Earnings

This table compares Quidel and BIOLASE’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quidel $191.60 million 8.32 -$13.80 million ($0.15) -312.58
BIOLASE $51.81 million 0.66 -$15.37 million ($0.33) -1.36

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

Institutional and Insider Ownership

92.7% of Quidel shares are held by institutional investors. Comparatively, 38.8% of BIOLASE shares are held by institutional investors. 22.0% of Quidel shares are held by company insiders. Comparatively, 7.1% of BIOLASE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Quidel and BIOLASE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quidel -2.33% -2.36% -1.25%
BIOLASE -36.28% -74.51% -40.81%

Summary

Quidel beats BIOLASE on 10 of the 13 factors compared between the two stocks.

Quidel Company Profile

Quidel Corporation is engaged in the development, manufacturing and marketing of diagnostic testing solutions. These diagnostic testing solutions are separated into four product categories: immunoassays, molecular assays, virology and specialty products. The Company sells its products directly to end users and distributors, in each case, for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, universities, retail clinics, pharmacies and wellness screening centers. Its diagnostic solutions aid in the detection and diagnosis of critical diseases and other medical conditions, including infectious diseases, women’s health, gastrointestinal diseases, autoimmune diseases, bone health and thyroid diseases. The Company provides diagnostic testing solutions under various brand names, including Quidel, QuickVue, QuickVue+, MicroVue, FreshCells, D3 FastPoint, Super E-Mix, ELVIS, Sofia, Quidel Molecular, Amplivue, Lyra and Thyretain.

BIOLASE Company Profile

BIOLASE, Inc. (BIOLASE) is a medical device company that develops, manufactures, markets and sells laser systems in dentistry and medicine. The Company markets, sells, and distributes dental imaging equipment, including cone beam digital x-rays and computer-aided design (CAD)/computer-aided manufacturing (CAM) intra-oral scanners, in-office, chair-side milling machines and three-dimensional (3-D) printers. It offers two categories of laser system products: WaterLase (all-tissue) systems and Diode (soft tissue) systems. Its brand, WaterLase, uses a combination of water and laser energy to perform procedures performed using drills, scalpels, and other traditional dental instruments for cutting soft and hard tissue. It also offers its Diode laser systems to perform soft tissue, pain therapy, and cosmetic procedures, including teeth whitening. Its Waterlase and Diode systems use disposable laser tips of differing sizes and shapes depending on the procedures being performed.

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