Critical Analysis: Bio-Rad Laboratories (NYSE:BIO) and Sanuwave Health (NASDAQ:SNWV)

Bio-Rad Laboratories (NYSE:BIO) and Sanuwave Health (NASDAQ:SNWV) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Volatility & Risk

Bio-Rad Laboratories has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Sanuwave Health has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Bio-Rad Laboratories and Sanuwave Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bio-Rad Laboratories	$2.57 billion	3.09	-$1.84 billion	($24.31)	-12.08
Sanuwave Health	$32.63 million	7.09	-$31.37 million	($1.30)	-20.74

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

Profitability

This table compares Bio-Rad Laboratories and Sanuwave Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bio-Rad Laboratories	-26.43%	4.19%	2.93%
Sanuwave Health	-17.06%	N/A	-25.20%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bio-Rad Laboratories and Sanuwave Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bio-Rad Laboratories	1	2	3	0	2.33
Sanuwave Health	1	0	1	1	2.67

Bio-Rad Laboratories presently has a consensus target price of $358.50, indicating a potential upside of 22.10%. Sanuwave Health has a consensus target price of $54.00, indicating a potential upside of 100.30%. Given Sanuwave Health’s stronger consensus rating and higher probable upside, analysts clearly believe Sanuwave Health is more favorable than Bio-Rad Laboratories.

Insider & Institutional Ownership

65.2% of Bio-Rad Laboratories shares are owned by institutional investors. Comparatively, 42.5% of Sanuwave Health shares are owned by institutional investors. 17.1% of Bio-Rad Laboratories shares are owned by insiders. Comparatively, 14.9% of Sanuwave Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sanuwave Health beats Bio-Rad Laboratories on 8 of the 15 factors compared between the two stocks.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc. manufactures and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. It operates through two segments, Life Science and Clinical Diagnostics. The company develops, manufactures, and markets instruments, systems, reagents, and consumables to separate, purify, characterize, and quantitate biological materials such as cells, proteins, and nucleic acids for proteomics, genomics, biopharmaceutical production, cellular biology, and food safety markets. It also designs, manufactures, markets, and supports test systems, informatics systems, test kits, and specialized quality controls for hospitals, diagnostic reference, transfusion, and physician office laboratories. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.

About Sanuwave Health

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.