Escalon Medical (OTCMKTS:ESMC – Get Free Report) and Cardinal Health (NYSE:CAH – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Escalon Medical and Cardinal Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Escalon Medical | $11.98 million | 0.16 | -$130,000.00 | $0.05 | 5.20 |
| Cardinal Health | $222.58 billion | 0.16 | $1.56 billion | $6.45 | 23.19 |
Insider and Institutional Ownership
87.2% of Cardinal Health shares are held by institutional investors. 1.9% of Escalon Medical shares are held by insiders. Comparatively, 0.1% of Cardinal Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Escalon Medical and Cardinal Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Escalon Medical | 4.70% | 45.60% | 12.66% |
| Cardinal Health | 0.70% | -74.45% | 4.14% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Escalon Medical and Cardinal Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Escalon Medical | 0 | 0 | 0 | 0 | 0.00 |
| Cardinal Health | 0 | 3 | 11 | 0 | 2.79 |
Cardinal Health has a consensus price target of $165.93, suggesting a potential upside of 10.95%. Given Cardinal Health’s stronger consensus rating and higher possible upside, analysts plainly believe Cardinal Health is more favorable than Escalon Medical.
Risk & Volatility
Escalon Medical has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Cardinal Health has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Summary
Cardinal Health beats Escalon Medical on 9 of the 14 factors compared between the two stocks.
About Escalon Medical
Escalon Medical Corp. engages in the development, manufacturing, marketing, and distribution of medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which provides information about the internal structure of the eye; B-Scan, a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque; UBM, a high frequency/high resolution ultrasound device, which provides detailed information about the anterior segment of the eye; and Pachymeter that measures the thickness of cornea. The company also provides Ispan Intraocular Gases, such as C3F8 and SF6 that are used by vitreoretinal surgeons as a temporary tamponade in detached retina surgery; and AXIS Image management system for managing ophthalmic diagnostic images through the web browser from various devices. In addition, it markets disposable surgical packs used in vitreoretinal surgery, including packs that aid surgeons in the process of injecting and extracting silicone oil. Further, the company engages in the manufacturing and distribution of patented disposable universal gas kit, which delivers the gas from the canister to the patient. It sells its products to medical institutions through independent sales representatives, network of distributors, and internal sales employees. Escalon Medical Corp. was incorporated in 1987 and is headquartered in Wayne, Pennsylvania.
About Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
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