Head-To-Head Survey: Masimo (NASDAQ:MASI) & Covalon Technologies (OTCMKTS:CVALF)

Masimo (NASDAQ:MASI) and Covalon Technologies (OTCMKTS:CVALF) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Insider & Institutional Ownership

86.0% of Masimo shares are owned by institutional investors. 9.7% of Masimo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Masimo has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Covalon Technologies has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Masimo and Covalon Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masimo	1	7	1	0	2.00
Covalon Technologies	0	0	0	0	0.00

Masimo currently has a consensus target price of $181.17, indicating a potential upside of 1.64%. Given Masimo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Masimo is more favorable than Covalon Technologies.

Earnings and Valuation

This table compares Masimo and Covalon Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Masimo	$1.53 billion	6.27	-$151.50 million	($10.54)	-16.91
Covalon Technologies	$23.43 million	1.47	$1.47 million	$0.02	62.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Masimo	-9.92%	32.02%	13.73%
Covalon Technologies	3.08%	3.21%	2.76%

Summary

Masimo beats Covalon Technologies on 10 of the 14 factors compared between the two stocks.

About Masimo

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.

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.