Critical Contrast: ADM Tronics Unlimited (OTCMKTS:ADMT) & Rapid Micro Biosystems (NASDAQ:RPID)

ADM Tronics Unlimited (OTCMKTS:ADMT) and Rapid Micro Biosystems (NASDAQ:RPID) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares ADM Tronics Unlimited and Rapid Micro Biosystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADM Tronics Unlimited	$3.20 million	2.14	-$120,000.00	N/A	N/A
Rapid Micro Biosystems	$28.05 million	6.32	-$46.89 million	($1.01)	-3.96

ADM Tronics Unlimited has higher earnings, but lower revenue than Rapid Micro Biosystems.

Analyst Recommendations

This is a breakdown of recent ratings for ADM Tronics Unlimited and Rapid Micro Biosystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADM Tronics Unlimited	0	0	0	0	0.00
Rapid Micro Biosystems	1	0	1	1	2.67

Rapid Micro Biosystems has a consensus target price of $8.00, indicating a potential upside of 100.00%. Given Rapid Micro Biosystems’ stronger consensus rating and higher probable upside, analysts plainly believe Rapid Micro Biosystems is more favorable than ADM Tronics Unlimited.

Volatility and Risk

ADM Tronics Unlimited has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Rapid Micro Biosystems has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Profitability

This table compares ADM Tronics Unlimited and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADM Tronics Unlimited	-3.87%	-15.66%	-5.89%
Rapid Micro Biosystems	-145.11%	-73.90%	-51.56%

Insider and Institutional Ownership

52.6% of Rapid Micro Biosystems shares are owned by institutional investors. 73.0% of ADM Tronics Unlimited shares are owned by insiders. Comparatively, 30.0% of Rapid Micro Biosystems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Rapid Micro Biosystems beats ADM Tronics Unlimited on 8 of the 13 factors compared between the two stocks.

About ADM Tronics Unlimited

ADM Tronics Unlimited, Inc., through its subsidiaries, develops, manufactures, and sells electronics for non-invasive medical and other applications in the United States, Australia, Asia, and Europe. It operates through Chemical, Electronics, and Engineering segments. The company offers proprietary devices for use in diagnostics and therapeutics of humans and animals; and electronic controllers for spas and hot tubs. In addition, the company provides water-based primers and adhesives; water-based coatings and resins; water-based chemical additives; and anti-static conductive paints, coatings, and other products. Further, it offers water-based, adhesive and related topical formulations for use in maxillofacial prosthetic medical applications; and for professional makeup applications primarily for film, TV, and theatrical productions. Additionally, the company provides research, development, regulatory, and engineering services for the design, development, and manufacturing of medical devices, electronics, and other technologies and products, as well as medical electronic therapeutic technology. ADM Tronics Unlimited, Inc. was incorporated in 1969 and is headquartered in Northvale, New Jersey.

About Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.