Head to Head Contrast: Electromed (NYSE:ELMD) versus Edap Tms (NASDAQ:EDAP)

Electromed (NYSE:ELMDGet Rating) and Edap Tms (NASDAQ:EDAPGet Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares Electromed and Edap Tms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electromed 4.94% 5.77% 5.06%
Edap Tms 1.51% 1.55% 0.96%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Electromed and Edap Tms, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electromed 0 0 0 0 N/A
Edap Tms 0 0 3 0 3.00

Edap Tms has a consensus price target of $11.33, indicating a potential upside of 56.32%. Given Edap Tms’ higher possible upside, analysts clearly believe Edap Tms is more favorable than Electromed.

Institutional and Insider Ownership

39.3% of Electromed shares are held by institutional investors. Comparatively, 27.2% of Edap Tms shares are held by institutional investors. 26.7% of Electromed shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Electromed and Edap Tms’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electromed $35.76 million 3.04 $2.36 million $0.22 57.96
Edap Tms $51.94 million 4.65 $820,000.00 $0.01 725.73

Electromed has higher earnings, but lower revenue than Edap Tms. Electromed is trading at a lower price-to-earnings ratio than Edap Tms, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Electromed has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Edap Tms has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Summary

Electromed beats Edap Tms on 7 of the 13 factors compared between the two stocks.

Electromed Company Profile (Get Rating)

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.

Edap Tms Company Profile (Get Rating)

EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally-invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. It operates in three divisions: High Intensity Focused Ultrasound (HIFU); Extracorporeal ShockWave Lithotripsy (ESWL); and Distribution. The HIFU division develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; Ablatherm Fusion that incorporates the company's proprietary fusion software, which merges MRI and ultrasound images; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer. It also provides disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology. This segment offers Sonolith i-move, an extracorporeal shockwave lithotripter to small and mid-size hospitals, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and maintenance services. The company markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. Its customers include hospitals, urology clinics, and research institutions. The company was incorporated in 1979 and is headquartered in Lyon, France.

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