Cytosorbents (CTSO) and Abaxis (ABAX) Critical Analysis

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

Dividends

Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Cytosorbents does not pay a dividend. Abaxis pays out 59.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cytosorbents and Abaxis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytosorbents 0 0 5 0 3.00
Abaxis 1 4 1 0 2.00

Cytosorbents currently has a consensus price target of $10.65, suggesting a potential upside of 42.95%. Abaxis has a consensus price target of $56.63, suggesting a potential downside of 16.47%. Given Cytosorbents’ stronger consensus rating and higher probable upside, equities analysts clearly believe Cytosorbents is more favorable than Abaxis.

Profitability

This table compares Cytosorbents and Abaxis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytosorbents -67.83% -233.72% -57.58%
Abaxis 10.51% 10.09% 8.69%

Institutional and Insider Ownership

9.5% of Cytosorbents shares are held by institutional investors. Comparatively, 97.2% of Abaxis shares are held by institutional investors. 5.6% of Cytosorbents shares are held by company insiders. Comparatively, 4.3% of Abaxis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cytosorbents and Abaxis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cytosorbents $9.53 million 22.43 -$11.93 million ($0.38) -19.61
Abaxis $227.22 million 6.77 $32.71 million $1.08 62.77

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

Risk & Volatility

Cytosorbents has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Abaxis has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

Abaxis beats Cytosorbents on 10 of the 16 factors compared between the two stocks.

Cytosorbents Company Profile

CytoSorbents Corporation is a critical care focused immunotherapy company. The Company is engaged in commercializing its product, CytoSorb, which is a blood purification technology with focus in preventing or treating multiple organ failure. The Company’s purification technologies are based on biocompatible, porous polymer beads that remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. The Company’s CytoSorb is an extracorporeal cytokine filter and is designed to reduce the cytokine storm that causes inflammation, organ failure and death in common critical illnesses, such as sepsis, burn injury, trauma, lung injury and pancreatitis. In addition, CytoSorb is used in other inflammatory conditions, such as cardiac surgery and autoimmune disease flares and cancer cachexia. It also has other products under development based upon its blood purification technology, including HemoDefend, ContrastSorb, DrugSorb, BetaSorb and others.

Abaxis Company Profile

Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.

Receive News & Ratings for Cytosorbents Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cytosorbents and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply