Head to Head Comparison: CVRx (NASDAQ:CVRX) versus Covalon Technologies (OTCMKTS:CVALF)

CVRx (NASDAQ:CVRX) and Covalon Technologies (OTCMKTS:CVALF) 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, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares CVRx and Covalon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVRx	-95.61%	-79.31%	-40.96%
Covalon Technologies	7.00%	7.77%	6.75%

Valuation & Earnings

This table compares CVRx and Covalon Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVRx	$54.65 million	5.17	-$59.97 million	($2.10)	-5.15
Covalon Technologies	$22.91 million	1.95	$1.96 million	$0.05	32.60

Covalon Technologies has lower revenue, but higher earnings than CVRx. CVRx is trading at a lower price-to-earnings ratio than Covalon Technologies, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CVRx has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Covalon Technologies has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

75.3% of CVRx shares are owned by institutional investors. 13.9% of CVRx 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.

Analyst Ratings

This is a breakdown of current recommendations for CVRx and Covalon Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVRx	2	0	5	1	2.63
Covalon Technologies	0	0	0	0	0.00

CVRx currently has a consensus target price of $14.00, suggesting a potential upside of 29.51%. Given CVRx’s stronger consensus rating and higher possible upside, research analysts plainly believe CVRx is more favorable than Covalon Technologies.

Summary

CVRx beats Covalon Technologies on 9 of the 15 factors compared between the two stocks.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.

About Covalon Technologies

Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of medical products in infection management, advanced wound care, and surgical procedure areas in the United States, Canada, the Middle East, Asia, Latin America, and internationally. The company’s platform technologies comprise collagen matrix platform that is used to manufacture a family of products to treat chronic and infected wounds, including diabetic ulcers, pressure ulcers, venous ulcers, donor and graft sites, traumatic wounds healing by secondary intention, dehisced surgical wounds, and first and second degree burns; and antimicrobial silicone adhesive platform, which is used for family of pre and post-surgical, and vascular access products that are designed to kill bacteria or yeast that comes into contact with the antimicrobial silicone providing broad-spectrum antimicrobial activity. It also offers medical coating platform, a process that utilizes photo-polymerization to create active grafting sites where new polymer chains are initiated and propagated from the surface of an existing medical device. In addition, the company provides wound care dressings; surgical and peri-operative; and infection management products. It offers its products under the Covalon brand name through third-party distribution networks and company’s direct sales force. The company serves hospitals, wound care centers, burn centers, extended/alternate care and acute care facilities, home health care agencies, and physicians’ offices. Covalon Technologies Ltd. is headquartered in Mississauga, Canada.