Critical Survey: Covalon Technologies (OTCMKTS:CVALF) and Spectral Diagnostics (OTCMKTS:EDTXF)

Profitability

This table compares Covalon Technologies and Spectral Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covalon Technologies	6.25%	6.75%	5.83%
Spectral Diagnostics	-1,538.72%	N/A	-718.77%

Risk & Volatility

Covalon Technologies has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Spectral Diagnostics has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Valuation & Earnings

This table compares Covalon Technologies and Spectral Diagnostics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covalon Technologies	$23.43 million	1.45	$1.47 million	$0.05	24.60
Spectral Diagnostics	$1.67 million	167.02	-$11.24 million	($0.11)	-8.67

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

Summary

Covalon Technologies beats Spectral Diagnostics on 8 of the 9 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 Spectral Diagnostics

Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.