Head-To-Head Analysis: Covalon Technologies (OTCMKTS:CVALF) & CVRx (NASDAQ:CVRX)

Covalon Technologies (OTCMKTS:CVALF) and CVRx (NASDAQ:CVRX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility & Risk

Covalon Technologies has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, CVRx has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Covalon Technologies and CVRx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covalon Technologies	$22.91 million	1.90	$1.96 million	$0.05	31.80
CVRx	$51.29 million	5.28	-$59.97 million	($2.10)	-4.93

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

Insider & Institutional Ownership

75.3% of CVRx shares are owned by institutional investors. 18.9% of CVRx shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Covalon Technologies and CVRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covalon Technologies	7.00%	7.77%	6.75%
CVRx	-95.61%	-79.31%	-40.96%

Analyst Recommendations

This is a summary of current ratings for Covalon Technologies and CVRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covalon Technologies	0	0	0	0	0.00
CVRx	2	0	5	1	2.63

CVRx has a consensus target price of $14.00, indicating a potential upside of 35.27%. Given CVRx’s stronger consensus rating and higher possible upside, analysts clearly believe CVRx is more favorable than Covalon Technologies.

Summary

CVRx beats Covalon Technologies on 9 of the 15 factors compared between the two stocks.

About Covalon Technologies

Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of medical products in infection management, advanced wound care, and surgical procedure areas in the United States, Canada, the Middle East, Asia, Latin America, and internationally. The company’s platform technologies comprise collagen matrix platform that is used to manufacture a family of products to treat chronic and infected wounds, including diabetic ulcers, pressure ulcers, venous ulcers, donor and graft sites, traumatic wounds healing by secondary intention, dehisced surgical wounds, and first and second degree burns; and antimicrobial silicone adhesive platform, which is used for family of pre and post-surgical, and vascular access products that are designed to kill bacteria or yeast that comes into contact with the antimicrobial silicone providing broad-spectrum antimicrobial activity. It also offers medical coating platform, a process that utilizes photo-polymerization to create active grafting sites where new polymer chains are initiated and propagated from the surface of an existing medical device. In addition, the company provides wound care dressings; surgical and peri-operative; and infection management products. It offers its products under the Covalon brand name through third-party distribution networks and company’s direct sales force. The company serves hospitals, wound care centers, burn centers, extended/alternate care and acute care facilities, home health care agencies, and physicians’ offices. Covalon Technologies Ltd. is headquartered in Mississauga, Canada.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.