United-Guardian (NASDAQ:UG) versus Surmodics (NASDAQ:SRDX) Financial Comparison

Surmodics (NASDAQ:SRDX) and United-Guardian (NASDAQ:UG) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Surmodics and United-Guardian”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surmodics	$120.80 million	5.09	-$11.54 million	($1.23)	-34.94
United-Guardian	$10.06 million	2.63	$3.25 million	$0.43	13.37

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

Volatility and Risk

Surmodics has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, United-Guardian has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Surmodics and United-Guardian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surmodics	2	2	1	0	1.80
United-Guardian	1	0	0	0	1.00

Surmodics presently has a consensus price target of $43.00, indicating a potential upside of 0.05%. Given Surmodics’ stronger consensus rating and higher possible upside, analysts clearly believe Surmodics is more favorable than United-Guardian.

Profitability

This table compares Surmodics and United-Guardian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surmodics	-14.59%	-2.99%	-1.99%
United-Guardian	23.56%	22.45%	19.22%

Insider & Institutional Ownership

96.6% of Surmodics shares are held by institutional investors. Comparatively, 23.2% of United-Guardian shares are held by institutional investors. 8.9% of Surmodics shares are held by insiders. Comparatively, 29.0% of United-Guardian shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

About Surmodics

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.

About United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.