Critical Analysis: CardioGenics (OTCMKTS:CGNH) and PROCEPT BioRobotics (NASDAQ:PRCT)

CardioGenics (OTCMKTS:CGNH) and PROCEPT BioRobotics (NASDAQ:PRCT) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares CardioGenics and PROCEPT BioRobotics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CardioGenics	N/A	N/A	N/A	N/A	N/A
PROCEPT BioRobotics	$308.05 million	4.08	-$95.57 million	($1.82)	-12.14

CardioGenics has higher earnings, but lower revenue than PROCEPT BioRobotics.

Insider and Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. 41.4% of CardioGenics shares are held by company insiders. Comparatively, 17.4% of PROCEPT BioRobotics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CardioGenics and PROCEPT BioRobotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CardioGenics	N/A	N/A	N/A
PROCEPT BioRobotics	-31.82%	-27.70%	-20.29%

Analyst Recommendations

This is a summary of recent recommendations for CardioGenics and PROCEPT BioRobotics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CardioGenics	0	0	0	0	0.00
PROCEPT BioRobotics	2	5	7	0	2.36

PROCEPT BioRobotics has a consensus target price of $41.36, suggesting a potential upside of 87.17%. Given PROCEPT BioRobotics’ stronger consensus rating and higher probable upside, analysts plainly believe PROCEPT BioRobotics is more favorable than CardioGenics.

Summary

PROCEPT BioRobotics beats CardioGenics on 5 of the 9 factors compared between the two stocks.

About CardioGenics

CardioGenics Holdings Inc. engages in the development and commercialization of diagnostic test products for the in vitro diagnostics testing market in the United States, Canada, Europe, and internationally. Its products include QL Care Analyzer, a portable, stand-alone, and automated point-of-care (POC) immunoassay analyzer that uses a proprietary self-metering cartridge to perform immunoassay tests at the POC; a series of immunoassay tests to identify cardiac markers in the blood at the time of a heart attack; and paramagnetic beads that are used as solid surfaces in heterogeneous immunoassay tests by clinical and research laboratories. The company was formerly known as Jag Media Holdings, Inc. and changed its name to CardioGenics Holdings Inc. in 2009. The company was founded in 1997 and is headquartered in Mississauga, Canada.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.