CochLear (OTCMKTS:CHEOY) and Biodesix (NASDAQ:BDSX) Critical Review

Biodesix (NASDAQ:BDSX) and CochLear (OTCMKTS:CHEOY) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares Biodesix and CochLear”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biodesix	$71.32 million	0.72	-$42.93 million	($5.56)	-1.16
CochLear	$1.53 billion	7.47	$251.85 million	N/A	N/A

CochLear has higher revenue and earnings than Biodesix.

Insider & Institutional Ownership

21.0% of Biodesix shares are owned by institutional investors. 30.1% of Biodesix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Biodesix and CochLear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biodesix	1	1	4	0	2.50
CochLear	0	3	0	2	2.80

Biodesix currently has a consensus target price of $32.50, indicating a potential upside of 403.10%. Given Biodesix’s higher possible upside, analysts clearly believe Biodesix is more favorable than CochLear.

Profitability

This table compares Biodesix and CochLear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biodesix	-49.31%	-504.41%	-43.94%
CochLear	N/A	N/A	N/A

Volatility & Risk

Biodesix has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, CochLear has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Summary

CochLear beats Biodesix on 9 of the 13 factors compared between the two stocks.

About Biodesix

Biodesix, Inc. operates as a data-driven diagnostic solutions company in the United States. The company offers blood-based lung tests, including Nodify XL2 and Nodify CDT tests, together marketed as part of Nodify Lung Nodule Risk Assessment testing strategy, to assess the risk of lung cancer and help in identifying the appropriate treatment pathway and help physicians in reclassifying risk of malignancy in patients with suspicious lung nodules. It also provides GeneStrat ddPCR and NGS, and VeriStrat tests, which are used in the diagnosis of lung cancer to measure the presence of mutations in the tumor and the state of the patient's immune system to establish the patient's prognosis and help guide treatment decisions. In addition, the company, through its partnership with Bio-Rad Laboratories, Inc., provides Bio-Rad SARS-CoV-2 ddPCR, a COVID-19 Test under Biodesix WorkSafe testing program; and Platelia SARS-CoV-2 Total Ab test, an antibody test for detecting a B-cell immune response to SARS-CoV-2 that indicate recent or prior infection. Further, it offers diagnostic and clinical research, as well as clinical trial testing services to biopharmaceutical companies; and discovers, develops, and commercializes companion diagnostics. The company was formerly known as Elston Technologies, Inc. and as changed to Biodesix, Inc. in 2006. Biodesix, Inc. was incorporated in 2005 and is headquartered in Louisville, Colorado.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.