Critical Survey: Surmodics (NASDAQ:SRDX) and Sanuwave Health (NASDAQ:SNWV)

Sanuwave Health (NASDAQ:SNWVGet Free Report) and Surmodics (NASDAQ:SRDXGet Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Sanuwave Health and Surmodics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanuwave Health -97.03% N/A -135.15%
Surmodics -14.59% -2.99% -1.99%

Analyst Recommendations

This is a summary of recent ratings for Sanuwave Health and Surmodics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanuwave Health 0 0 1 0 3.00
Surmodics 0 3 1 0 2.25

Sanuwave Health presently has a consensus target price of $49.00, suggesting a potential upside of 26.91%. Surmodics has a consensus target price of $43.00, suggesting a potential upside of 14.79%. Given Sanuwave Health’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sanuwave Health is more favorable than Surmodics.

Volatility and Risk

Sanuwave Health has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Surmodics has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sanuwave Health and Surmodics”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanuwave Health $32.63 million 10.14 -$31.37 million ($8.25) -4.68
Surmodics $126.08 million 4.25 -$11.54 million ($1.23) -30.46

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

Insider & Institutional Ownership

42.5% of Sanuwave Health shares are owned by institutional investors. Comparatively, 96.6% of Surmodics shares are owned by institutional investors. 14.9% of Sanuwave Health shares are owned by company insiders. Comparatively, 8.9% of Surmodics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Surmodics beats Sanuwave Health on 7 of the 13 factors compared between the two stocks.

About Sanuwave Health

(Get Free Report)

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.

About Surmodics

(Get Free Report)

Surmodics, Inc., together with its subsidiaries, provides performance coating technologies for intravascular medical devices, and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates through two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for neurovascular, peripheral, coronary, and structural heart, and other markets, as well as manufacturing of vascular intervention medical devices, including drug-coated balloons, mechanical thrombectomy devices, and radial access balloon catheters and guide sheaths. The IVD segment develops, manufactures, and sells chemical and biological components for in vitro diagnostic immunoassay and molecular tests, as well as diagnostic and biomedical research markets. This segment offers protein stabilizers, substrates, surface coatings, and antigens. The company was founded in 1979 and is headquartered in Eden Prairie, Minnesota.

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