Heska (NASDAQ:HSKA) and Adverum Biotechnologies (NASDAQ:ADVM) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
This table compares Heska and Adverum Biotechnologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Heska has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Adverum Biotechnologies has a beta of 3.83, meaning that its share price is 283% more volatile than the S&P 500.
Valuation & Earnings
This table compares Heska and Adverum Biotechnologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Heska||$129.34 million||5.97||$9.95 million||$2.07||49.75|
|Adverum Biotechnologies||$1.85 million||127.41||-$56.14 million||($1.29)||-2.91|
Heska has higher revenue and earnings than Adverum Biotechnologies. Adverum Biotechnologies is trading at a lower price-to-earnings ratio than Heska, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Heska and Adverum Biotechnologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Heska presently has a consensus target price of $107.50, indicating a potential upside of 4.38%. Adverum Biotechnologies has a consensus target price of $6.88, indicating a potential upside of 82.85%. Given Adverum Biotechnologies’ higher possible upside, analysts clearly believe Adverum Biotechnologies is more favorable than Heska.
Insider and Institutional Ownership
88.6% of Heska shares are held by institutional investors. Comparatively, 58.4% of Adverum Biotechnologies shares are held by institutional investors. 14.7% of Heska shares are held by insiders. Comparatively, 5.0% of Adverum Biotechnologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Heska beats Adverum Biotechnologies on 11 of the 14 factors compared between the two stocks.
Heska Company Profile
Heska Corporation manufactures, sells, and markets veterinary diagnostic and specialty products for canine and feline healthcare markets in the United States, Canada, Europe, and internationally. The company's Core Companion Animal Health segment offers Element DC and DRI-CHEM 7000 veterinary chemistry analyzers for blood chemistry and electrolyte analysis; HT5 and HEMATRUE veterinary hematology analyzers to measure blood cell and platelet count, and hemoglobin levels; Element POC blood gas and electrolyte analyzers; COAG veterinary analyzers; Element i immunodiagnostic analyzers; and IV infusion pumps. This segment also provides veterinary imaging instruments and services, such as digital radiography solutions and ultrasound systems, as well as sells mobile digital radiography products; Cloudbank, a Web-based image storage solution; ViewCloud, a picture archival and communications system for Cloudbank; point-of-care heartworm diagnostic test products for dogs and cats; TRI-HEART Plus chewable tablets for the treatment of canine heartworm infection, and treatment and control of ascarid and hookworm infections; and allergy products and services, including ALLERCEPT definitive allergen panels, and therapy shots or drops. Its Other Vaccines, Pharmaceuticals and Products segment offers bovine vaccines primarily under the Titanium and MasterGuard brands; biological and pharmaceutical products for other animal health companies; and turnkey services comprising research, licensing, production, labeling, and packaging. The company sells its products to veterinarians through a field organization and third-party distributors; and trade shows, print advertising, and other distribution relationships. Heska Corporation has product development partnership and licensing agreement with MBio Diagnostics, Inc. The company was formerly known as Paravax, Inc. and changed its name to Heska Corporation. Heska Corporation was founded in 1988 and is headquartered in Loveland, Colorado.
Adverum Biotechnologies Company Profile
Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates that target serious rare and ocular diseases. It leverages its adeno-associated virus (AAV)-based directed evolution platform to develop products. The company's pipeline of product candidates include ADVM-043 to treat alpha-1 antitrypsin deficiency, which is in Phase I/II clinical trial; and ADVM-053 for hereditary angioedema disease, which is in preclinical stage; as well as ADVM-022 and ADVM-032 for wet age-related macular degeneration disease, which are in preclinical stage. It has collaboration agreement with Editas Medicine, Inc. to leverage its proprietary AAV vectors for genome editing technologies to treat up to five inherited retinal diseases; and Regeneron Pharmaceuticals, Inc. for the development of up to eight distinct ocular therapeutic targets, as well as includes AVA-311 for the treatment of juvenile X-Linked Retinoschisis. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.
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