Cytori Therapeutics (NASDAQ: NVCN) and Neovasc (NASDAQ:NVCN) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Cytori Therapeutics and Neovasc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cytori Therapeutics $2.69 million 1.49 -$22.68 million ($6.50) -0.08
Neovasc $5.39 million 10.44 -$22.90 million ($0.37) -0.08

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

Profitability

This table compares Cytori Therapeutics and Neovasc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytori Therapeutics -380.64% -202.09% -64.08%
Neovasc -3,427.42% N/A -79.39%

Institutional & Insider Ownership

32.6% of Cytori Therapeutics shares are held by institutional investors. Comparatively, 7.8% of Neovasc shares are held by institutional investors. 0.8% of Cytori Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Cytori Therapeutics has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, Neovasc has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Cytori Therapeutics and Neovasc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytori Therapeutics 0 1 3 0 2.75
Neovasc 0 0 2 0 3.00

Cytori Therapeutics currently has a consensus price target of $13.83, indicating a potential upside of 2,560.26%. Neovasc has a consensus price target of $1.25, indicating a potential upside of 4,066.67%. Given Neovasc’s stronger consensus rating and higher probable upside, analysts plainly believe Neovasc is more favorable than Cytori Therapeutics.

Summary

Cytori Therapeutics beats Neovasc on 7 of the 13 factors compared between the two stocks.

About Cytori Therapeutics

Cytori Therapeutics, Inc., a therapeutics company, together with its subsidiaries, develops regenerative and oncologic therapies from its proprietary cell therapy and nanoparticle platforms for various medical conditions. Its lead drug candidate, ATI-0918, is a generic version of pegylated liposomal encapsulated doxorubicin, which is in Phase III clinical trial and used for various cancer types. The company's second nanomedicine drug candidate is, ATI-1123, a novel and new chemical entity, which has completed Phase I clinical trial and is a workhorse chemotherapeutic drug used for various cancers. It also sells Celution cell processing systems, StemSource cell and tissue banking systems, and surgical accessories and instrumentation to hospitals, clinics, physicians, researchers, and other customers for commercial and research purposes through a combination of a direct sales force, third-party distributors, independent sales representatives, and licensees. In addition, the company markets and sells its proprietary enzymatic reagents under the Celase and Intravase brands. It has operations in the Americas, Japan, EMEA, and the Asia Pacific. Cytori Therapeutics, Inc. was founded in 1996 and is headquartered in San Diego, California.

About Neovasc

Neovasc Inc., a specialty medical device company, develops, manufactures, and markets cardiovascular devices worldwide. Its products include the Tiara technology for the transcatheter treatment of mitral valve disease; and the Neovasc Reducer for the treatment of refractory angina. The company also provides Peripatch tissue products. The company was formerly known as Medical Ventures Corp. and changed its name to Neovasc Inc. in July 2008. Neovasc Inc. was incorporated in 2000 and is headquartered in Richmond, Canada.

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