Volcano (VOLC) and BIOLASE (BIOL) Head to Head Review

Volcano (NASDAQ: VOLC) and BIOLASE (NASDAQ:BIOL) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Volcano -8.21% -10.48% -3.68%
BIOLASE -36.28% -74.51% -40.81%

Earnings and Valuation

This table compares Volcano and BIOLASE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Volcano N/A N/A N/A ($0.74) N/A
BIOLASE $51.81 million 0.76 -$15.37 million ($0.31) -1.68

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Volcano and BIOLASE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Volcano 0 0 0 0 N/A
BIOLASE 0 0 1 0 3.00

BIOLASE has a consensus target price of $2.50, suggesting a potential upside of 380.77%.

Institutional & Insider Ownership

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

Summary

BIOLASE beats Volcano on 5 of the 8 factors compared between the two stocks.

About Volcano

Volcano Corporation designs, develops, manufactures and commercializes a suite of precision guided therapy tools including intravascular ultrasound (IVUS) and fractional flow reserve (FFR) products. The Company markets its products to physicians, nurses and technicians who perform endovascular based coronary and peripheral interventional procedures in hospitals and to other personnel who make purchasing decisions on behalf of hospitals. The Company’s products consist of consoles that are marketed as stand-alone units or as units that can be integrated into a variety of hospital-based interventional surgical suites called catheterization laboratories, or cath labs. The Company has developed customized cath lab versions of these consoles. The Company sells products directly to customers in the United States, Japan, certain European markets and South Africa. The Company’s products include consoles, IVUS products, FFR products, Pioneer plus re-entry catheter and crux VCF system.

About BIOLASE

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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