InfuSystem (NYSE:INFU) versus Arch Therapeutics (OTCMKTS:ARTH) Financial Comparison

Arch Therapeutics (OTCMKTS:ARTH) and InfuSystem (NYSE:INFU) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

6.9% of Arch Therapeutics shares are held by institutional investors. Comparatively, 71.1% of InfuSystem shares are held by institutional investors. 4.5% of Arch Therapeutics shares are held by company insiders. Comparatively, 11.4% of InfuSystem shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Arch Therapeutics and InfuSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Therapeutics	-8,257.70%	N/A	-730.22%
InfuSystem	1.12%	2.78%	1.41%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Arch Therapeutics and InfuSystem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Therapeutics	0	0	0	0	0.00
InfuSystem	0	0	0	3	4.00

InfuSystem has a consensus price target of $12.50, suggesting a potential upside of 26.01%. Given InfuSystem’s stronger consensus rating and higher possible upside, analysts plainly believe InfuSystem is more favorable than Arch Therapeutics.

Volatility & Risk

Arch Therapeutics has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500. Comparatively, InfuSystem has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Valuation and Earnings

This table compares Arch Therapeutics and InfuSystem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Therapeutics	$80,000.00	0.00	-$6.98 million	N/A	N/A
InfuSystem	$139.89 million	1.45	$870,000.00	$0.23	43.13

InfuSystem has higher revenue and earnings than Arch Therapeutics.

Summary

InfuSystem beats Arch Therapeutics on 10 of the 11 factors compared between the two stocks.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.