Critical Survey: Minerva Surgical (NASDAQ:UTRS) and Electromed (NYSE:ELMD)

Electromed (NYSE:ELMD) and Minerva Surgical (NASDAQ:UTRS) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

40.8% of Electromed shares are held by institutional investors. 10.5% of Electromed shares are held by insiders. Comparatively, 8.5% of Minerva Surgical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Electromed and Minerva Surgical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electromed	0	1	3	0	2.75
Minerva Surgical	0	0	0	0	0.00

Electromed presently has a consensus target price of $37.50, indicating a potential downside of 11.85%. Given Minerva Surgical’s higher probable upside, analysts clearly believe Minerva Surgical is more favorable than Electromed.

Profitability

This table compares Electromed and Minerva Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electromed	11.34%	15.71%	13.37%
Minerva Surgical	N/A	N/A	N/A

Valuation and Earnings

This table compares Electromed and Minerva Surgical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electromed	$71.75 million	4.91	$5.15 million	$1.17	36.36
Minerva Surgical	$51.69 million	0.00	-$34.11 million	($1.81)	N/A

Electromed has higher revenue and earnings than Minerva Surgical. Minerva Surgical is trading at a lower price-to-earnings ratio than Electromed, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Electromed has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Minerva Surgical has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Summary

Electromed beats Minerva Surgical on 11 of the 13 factors compared between the two stocks.

About Electromed

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy and amyotrophic lateral sclerosis; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products to hospitals, home health care centers, pulmonary rehabilitation centers, cystic fibrosis centers, neuromuscular clinics, and other clinics through distributors. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.

About Minerva Surgical

Minerva Surgical, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes minimally invasive solutions to meet the uterine healthcare needs of women in the United States. The company provides Minerva ES Endometrial Ablation System and Genesys HTA Endometrial Ablation System, which are endometrial ablation devices; Symphion Tissue Removal System, a minimally invasive uterine tissue removal system to combine bladeless tissue resection and coagulation, continuous visualization, and intrauterine pressure monitoring; and Resectr Tissue Resection Device, a handheld surgical instrument to enable the hysteroscopic removal and diagnosis of endometrial polyps. Its devices are utilized by obstetrician-gynecologists in various medical treatment settings, including hospitals, ambulatory surgical centers, and physician offices. The company was incorporated in 2008 and is headquartered in Santa Clara, California.