Spectral Medical (OTCMKTS:EDTXF) and Cerus (NASDAQ:CERS) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk & Volatility
Spectral Medical has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Cerus has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
This table compares Spectral Medical and Cerus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Spectral Medical and Cerus, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cerus has a consensus price target of $9.50, suggesting a potential upside of 108.33%. Given Cerus’ higher possible upside, analysts clearly believe Cerus is more favorable than Spectral Medical.
Valuation and Earnings
This table compares Spectral Medical and Cerus’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spectral Medical||$2.96 million||21.00||-$1.92 million||N/A||N/A|
|Cerus||$60.91 million||10.32||-$57.56 million||($0.44)||-10.36|
Spectral Medical has higher earnings, but lower revenue than Cerus.
Institutional & Insider Ownership
65.5% of Cerus shares are owned by institutional investors. 7.3% of Cerus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Cerus beats Spectral Medical on 7 of the 11 factors compared between the two stocks.
Spectral Medical Company Profile
Spectral Medical Inc. focuses on the development and commercialization of treatment for septic shock in North America. The company markets Endotoxin Activity Assay, a rapid diagnostic test for the detection of components of gram negative bacterial cell wall in Europe and Canada; and Toraymyxin, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream in Europe, Canada, and Japan. It also develops, produces, and markets recombinant proteins, antibodies, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops continuous renal replacement therapy, an open platform for other hemoperfusion cartridges. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was founded in 1991 and is headquartered in Toronto, Canada.
Cerus Company Profile
Cerus Corporation, a biomedical products company, focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; and INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion. It markets platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was founded in 1991 and is headquartered in Concord, California.
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