Cerner (NASDAQ: CERN) and BIOLASE (NASDAQ:BIOL) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
82.0% of Cerner shares are owned by institutional investors. Comparatively, 28.8% of BIOLASE shares are owned by institutional investors. 13.1% of Cerner shares are owned by insiders. Comparatively, 7.1% of BIOLASE shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Cerner and BIOLASE’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cerner||$5.14 billion||3.96||$636.48 million||$2.57||23.86|
|BIOLASE||$51.81 million||0.88||-$15.37 million||($0.31)||-1.43|
Cerner has higher revenue and earnings than BIOLASE. BIOLASE is trading at a lower price-to-earnings ratio than Cerner, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Cerner and BIOLASE, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cerner currently has a consensus target price of $65.40, indicating a potential upside of 6.67%. BIOLASE has a consensus target price of $2.50, indicating a potential upside of 462.05%. Given BIOLASE’s stronger consensus rating and higher probable upside, analysts plainly believe BIOLASE is more favorable than Cerner.
This table compares Cerner and BIOLASE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Cerner has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, BIOLASE has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.
Cerner beats BIOLASE on 11 of the 14 factors compared between the two stocks.
Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, the Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The Company’s solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform.
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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