Arca Biopharma (NASDAQ:ABIO) and Meridian Bioscience (NASDAQ:VIVO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
Arca Biopharma has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Meridian Bioscience has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
This table compares Arca Biopharma and Meridian Bioscience’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
13.8% of Arca Biopharma shares are held by institutional investors. Comparatively, 89.9% of Meridian Bioscience shares are held by institutional investors. 3.6% of Arca Biopharma shares are held by insiders. Comparatively, 2.0% of Meridian Bioscience shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.1%. Arca Biopharma does not pay a dividend. Meridian Bioscience pays out 67.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Arca Biopharma and Meridian Bioscience’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arca Biopharma||N/A||N/A||-$18.49 million||N/A||N/A|
|Meridian Bioscience||$213.57 million||3.25||$23.84 million||$0.74||22.15|
Meridian Bioscience has higher revenue and earnings than Arca Biopharma.
This is a summary of current ratings and recommmendations for Arca Biopharma and Meridian Bioscience, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arca Biopharma presently has a consensus price target of $2.00, indicating a potential upside of 376.19%. Given Arca Biopharma’s higher possible upside, equities research analysts clearly believe Arca Biopharma is more favorable than Meridian Bioscience.
Meridian Bioscience beats Arca Biopharma on 7 of the 12 factors compared between the two stocks.
Arca Biopharma Company Profile
ARCA biopharma, Inc., a biopharmaceutical company, focuses on developing genetically-targeted therapies for cardiovascular diseases. The company's lead product candidate is Gencaro, a pharmacologically beta-blocker and mild vasodilator, which is in clinical trial for the treatment of atrial fibrillation in chronic heart failure patients with reduced left ventricular ejection fraction. It also engages in the development of a preclinical plan for AB171, a new chemical entity for the treatment of various cardiovascular indications, such as peripheral arterial disease and chronic heart failure. The company has a collaboration agreement with Medtronic, Inc. for the support of GENETIC-AF Phase 2B clinical trials; and Laboratory Corporation of America to provide the companion diagnostic test and services to support GENETIC-AF trial. ARCA biopharma, Inc. is headquartered in Westminster, Colorado.
Meridian Bioscience Company Profile
Meridian Bioscience, Inc., a life science company, develops, manufactures, distributes, and sells diagnostic test kits primarily for various gastrointestinal and respiratory infectious diseases, and elevated blood lead levels worldwide. The company operates through Diagnostics and Life Science segments. The Diagnostics segment offers testing platforms and technologies, including isothermal DNA amplification under the Alethia brand; rapid immunoassays, a single-use immunoassays under the ImmunoCard and ImmunoCard STAT! brand names; enzyme-linked immunoassays under the PREMIER brand; and anodic stripping voltammetry, an electrical chemical sensor platform for quantitative determination under the LeadCare brand. This segment's products are primarily used in the detection of infectious diseases caused by various bacteria, viruses, parasites, and pathogens. Its products consists of gastrointestinal assays, including tests for C. difficile, Enterohemorrhagic E. coli, Campylobacter jejuni, H. pylori, Cryptosporidium, giardia lamblia, and calprotectin; respiratory illness assays, such as tests for Group A Streptococcus, Influenza, M. pneumoniae, Bordetella pertussis, and respiratory syncytial virus; blood chemistry assays; and tests for Group B Streptococcus, Chlamydia trachomatis, Neisseria gonorrhea, Herpes Simplex Virus Type 1 and Type 2, and Malaria. This segment sells its products through direct sales force and independent distributors to acute care hospitals, reference laboratories, outpatient clinics, and physician office laboratories. The Life Science segment offers bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents used by researchers, agri-bio companies, and other diagnostic manufacturing companies. Meridian Bioscience, Inc. was founded in 1976 and is headquartered in Cincinnati, Ohio.
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