Critical Review: PetMed Express (NASDAQ:PETS) versus MedAvail (NASDAQ:MDVL)

PetMed Express (NASDAQ:PETS) and MedAvail (NASDAQ:MDVL) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares PetMed Express and MedAvail’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PetMed Express $309.21 million 1.80 $30.60 million N/A N/A
MedAvail $13.97 million 7.48 -$26.81 million ($3.80) -0.84

PetMed Express has higher revenue and earnings than MedAvail.

Insider & Institutional Ownership

87.0% of PetMed Express shares are held by institutional investors. Comparatively, 86.8% of MedAvail shares are held by institutional investors. 2.9% of PetMed Express shares are held by insiders. Comparatively, 3.7% of MedAvail shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PetMed Express and MedAvail’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PetMed Express 9.33% 20.09% 16.29%
MedAvail -259.56% -77.27% -62.84%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PetMed Express and MedAvail, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PetMed Express 0 1 0 0 2.00
MedAvail 0 1 1 0 2.50

PetMed Express presently has a consensus price target of $39.00, suggesting a potential upside of 42.86%. MedAvail has a consensus price target of $8.75, suggesting a potential upside of 174.29%. Given MedAvail’s stronger consensus rating and higher possible upside, analysts plainly believe MedAvail is more favorable than PetMed Express.

Volatility and Risk

PetMed Express has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, MedAvail has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

PetMed Express beats MedAvail on 7 of the 13 factors compared between the two stocks.

About PetMed Express

PetMed Express, Inc. engages in the provision of markets prescription and non-prescription pet medications, health products and supplies for dogs and cats. Its non-prescription medications include flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies. The prescription medications include heartworm preventatives, arthritis, thyroid, diabetes and pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The firm markets its products through national television, online and direct mail or print advertising campaigns. The company was founded in January 1996 and is headquartered in Delray Beach, FL.

About MedAvail

MedAvail Holdings, Inc. is a technology-enabled pharmacy company. It provides turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. The firm helps patients to optimize drug adherence, resulting in better health outcomes. The company was founded on April 11, 2007 and is headquartered in Mississauga, Canada.

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