Financial Comparison: GBS (NYSE:GBS) versus InfuSystem (NYSE:INFU)

GBS (NYSE:GBS) and InfuSystem (NYSE:INFU) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for GBS and InfuSystem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	0.00
InfuSystem	0	1	2	2	3.20

InfuSystem has a consensus price target of $14.50, suggesting a potential upside of 56.93%. Given InfuSystem’s stronger consensus rating and higher possible upside, analysts plainly believe InfuSystem is more favorable than GBS.

Institutional and Insider Ownership

2.8% of GBS shares are owned by institutional investors. Comparatively, 71.1% of InfuSystem shares are owned by institutional investors. 0.3% of GBS shares are owned by company insiders. Comparatively, 10.2% of InfuSystem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares GBS and InfuSystem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	N/A	N/A	-$8.31 million	($0.56)	-1.29
InfuSystem	$141.05 million	1.33	$870,000.00	$0.26	35.54

InfuSystem has higher revenue and earnings than GBS. GBS is trading at a lower price-to-earnings ratio than InfuSystem, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

GBS has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, InfuSystem has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares GBS and InfuSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
InfuSystem	1.12%	2.78%	1.41%

Summary

InfuSystem beats GBS on 14 of the 14 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.