Catasys (NASDAQ:CATS) and Emmaus Life Sciences (NASDAQ:EMMA) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

13.3% of Catasys shares are owned by institutional investors. Comparatively, 0.1% of Emmaus Life Sciences shares are owned by institutional investors. 60.8% of Catasys shares are owned by insiders. Comparatively, 36.9% of Emmaus Life Sciences shares are owned 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.

Earnings & Valuation

This table compares Catasys and Emmaus Life Sciences’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Catasys $15.18 million 18.89 -$14.21 million ($0.89) -19.87
Emmaus Life Sciences $1.32 million 117.97 -$9.59 million ($11.16) -0.29

Emmaus Life Sciences has lower revenue, but higher earnings than Catasys. Catasys is trading at a lower price-to-earnings ratio than Emmaus Life Sciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Catasys and Emmaus Life Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catasys 0 0 3 0 3.00
Emmaus Life Sciences 0 0 0 0 N/A

Catasys presently has a consensus price target of $21.00, indicating a potential upside of 18.78%. Given Catasys’ higher possible upside, equities research analysts plainly believe Catasys is more favorable than Emmaus Life Sciences.

Risk & Volatility

Catasys has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Emmaus Life Sciences has a beta of 2.86, suggesting that its share price is 186% more volatile than the S&P 500.

Profitability

This table compares Catasys and Emmaus Life Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catasys -64.33% N/A -172.78%
Emmaus Life Sciences -561.61% -467.46% -216.02%

Summary

Catasys beats Emmaus Life Sciences on 9 of the 13 factors compared between the two stocks.

About Catasys

Catasys, Inc. provides big data predictive analytics, artificial intelligence and telehealth, combined with human intervention services to health plans and other third party payors. It offers OnTrak solution to improve treatment outcomes and lower the utilization of medical and behavioral health plan services. The company's OnTrak solution includes medical and psychosocial interventions; and a proprietary Web based clinical information platform and database, psychosocial programs, and integrated care coaching services. Its OnTrak solution combines medical and psychosocial treatments with elements of traditional disease management, case management, and ongoing member support to help organizations treat and manage populations struggling with substance dependence, depression, and anxiety to improve their health and thereby decrease their health care costs. Catasys, Inc.'s OnTrak solution includes various components, such as identification of impactable members, member engagement, enrollment/referral, provider network, outpatient medical treatment, outpatient psychosocial treatment, care coaching, monitoring and reporting, and proprietary Web-based clinical information platform. The company was formerly known as Hythiam, Inc. and changed its name to Catasys, Inc. in March 2011. Catasys, Inc. was founded in 2000 and is based in Los Angeles, California.

About Emmaus Life Sciences

Emmaus Life Sciences, Inc. engages in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases in the United States and internationally. It provides Endari, which is L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older; NutreStore L-glutamine powder; and AminoPure, a nutritional supplement. The company also develops therapeutic products based on cell sheet technology for the treatment of corneal diseases. In addition, it focuses on developing pharmaceutical-grade L-glutamine oral powder for diverticulosis. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. Emmaus Life Sciences, Inc. was founded in 2000 and is headquartered in Torrance, California.

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