Critical Review: Invacare (NYSE:IVC) vs. ConforMIS (NYSE:CFMS)
ConforMIS (NASDAQ:CFMS) and Invacare (NYSE:IVC) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Institutional & Insider Ownership
34.1% of ConforMIS shares are owned by institutional investors. 3.4% of ConforMIS shares are owned by insiders. Comparatively, 2.0% of Invacare shares are owned 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.
Invacare pays an annual dividend of $0.05 per share and has a dividend yield of 1.0%. ConforMIS does not pay a dividend. Invacare pays out -3.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for ConforMIS and Invacare, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ConforMIS presently has a consensus target price of $3.13, indicating a potential downside of 19.25%. Invacare has a consensus target price of $15.00, indicating a potential upside of 195.28%. Given Invacare’s higher possible upside, analysts clearly believe Invacare is more favorable than ConforMIS.
Earnings and Valuation
This table compares ConforMIS and Invacare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ConforMIS||$89.79 million||2.92||-$43.37 million||($0.74)||-5.23|
|Invacare||$972.35 million||0.18||-$43.92 million||($1.32)||-3.85|
ConforMIS has higher earnings, but lower revenue than Invacare. ConforMIS is trading at a lower price-to-earnings ratio than Invacare, indicating that it is currently the more affordable of the two stocks.
This table compares ConforMIS and Invacare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
ConforMIS has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, Invacare has a beta of 2.29, suggesting that its stock price is 129% more volatile than the S&P 500.
Invacare beats ConforMIS on 9 of the 15 factors compared between the two stocks.
Conformis, Inc., a medical technology company, develops, manufactures, and sells joint replacement implants. The company offers customized knee replacement products, including iTotal CR, a cruciate-retaining product; iTotal PS, a posterior cruciate ligament substituting product; iDuo, a customized bicompartmental knee replacement system; and iUni, a customized unicompartmental knee replacement product to treat the medial or lateral compartment of the knee. It also provides Conformis Hip System, a hip replacement product; and iJigs, a customized single-use patient-specific instrumentation. The company markets and sells its products to hospitals and other medical facilities through sales force, independent sales representatives, and distributors in the United States, Germany, the United Kingdom, Austria, Ireland, Switzerland, Singapore, Hong Kong, Malaysia, Monaco, Hungary, Spain, and Australia Conformis, Inc. was founded in 2004 and is headquartered in Billerica, Massachusetts.
Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company operates through Europe, North America/Home Medical Equipment, Institutional Products Group, and the Asia/Pacific segments. It offers mobility and seating products, such as power wheelchairs under the Invacare TDX brand; custom manual wheelchairs under the Invacare, Invacare Top End, and Küschall brand names; and seating and positioning products. The company also provides lifestyle products, including pressure relieving overlays and mattress systems under the Invacare Softform and microAIR brands; safe resident handling products; residential care and home beds and bed accessories, and manual wheelchairs under the Invacare brand name; and personal care products. In addition, the company offers respiratory therapy products comprising stationary oxygen concentrators under the Platinum and Perfecto2 brands; portable oxygen concentrators; and Invacare HomeFill oxygen systems. Further, it sells and distributes healthcare furnishings consisting of long-term care beds, case goods, safe patient handling equipment, and other equipment and accessories for long-term care customers. It sells its products primarily to home medical equipment providers through retail and e-commerce channels, as well as to residential care operators, distributors, and government health service customers through its sales force, independent manufacturers' representatives, and distributors. Invacare Corporation was founded in 1885 and is headquartered in Elyria, Ohio.
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