Critical Analysis: Cerus (CERS) vs. Uroplasty (UPI)

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

Volatility and Risk

Cerus has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Uroplasty has a beta of -1.26, suggesting that its stock price is 226% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cerus and Uroplasty’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cerus $39.28 million 12.80 -$62.90 million ($0.59) -7.37
Uroplasty N/A N/A N/A ($0.30) -4.07

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cerus -159.35% -142.18% -67.72%
Uroplasty -31.58% -87.33% -60.82%

Insider & Institutional Ownership

55.8% of Cerus shares are held by institutional investors. 7.4% of Cerus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerus 0 1 4 0 2.80
Uroplasty 0 0 0 0 N/A

Cerus presently has a consensus target price of $6.20, suggesting a potential upside of 42.53%. Given Cerus’ higher probable upside, equities research analysts plainly believe Cerus is more favorable than Uroplasty.

Summary

Cerus beats Uroplasty on 6 of the 11 factors compared between the two stocks.

About Cerus

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.

About Uroplasty

Cogentix Medical, Inc. (Cogentix Medical) is a medical device company. The Company is engaged in the design, development, manufacturing and marketing of products for endoscopy with its product lines featuring a visualization system and sterile disposable microbial barrier, known as EndoSheath technology, providing users with endoscope turnover. The Company’s products include Urgent PC Neuromodulation System, Macroplastique Bulking Agent, Endoscopy Systems and EndoSheath Technology. The Company is also engaged in the commercialization of the Urgent PC Neuromodulation System, a device which delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder (OAB). Its Macroplastique is an injectable soft-tissue bulking agent used to treat stress urinary incontinence (SUI) due to intrinsic sphincter deficiency (ISD). The Company offers 5000 and 7000 series of endoscopes, which are video endoscopy systems.

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