Invacare Corporation (NYSE: IVC) and Capnia (NASDAQ:SLNO) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
This table compares Invacare Corporation and Capnia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Capnia does not pay a dividend. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Invacare Corporation and Capnia’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Invacare Corporation||$980.12 million||0.49||-$13.64 million||($1.93)||-7.64|
|Capnia||$1.45 million||80.64||-$12.24 million||($3.75)||-0.65|
Capnia has higher revenue, but lower earnings than Invacare Corporation. Invacare Corporation is trading at a lower price-to-earnings ratio than Capnia, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Invacare Corporation has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Capnia has a beta of 6.5, indicating that its stock price is 550% more volatile than the S&P 500.
Institutional & Insider Ownership
34.1% of Capnia shares are owned by institutional investors. 3.2% of Invacare Corporation shares are owned by insiders. Comparatively, 69.8% of Capnia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings for Invacare Corporation and Capnia, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Invacare Corporation presently has a consensus price target of $14.50, suggesting a potential downside of 1.69%. Capnia has a consensus price target of $25.00, suggesting a potential upside of 924.59%. Given Capnia’s stronger consensus rating and higher possible upside, analysts plainly believe Capnia is more favorable than Invacare Corporation.
Invacare Corporation beats Capnia on 8 of the 15 factors compared between the two stocks.
Invacare Corporation Company Profile
Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.
Capnia Company Profile
Soleno Therapeutics, Inc., formerly Capnia, Inc., is a healthcare company that develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. The Company offers products, such as CoSense end-tidal carbon monoxide (ETCO) Monitor, NeoPIP Infant Resuscitator and Accessories, and Serenz Nasal Relief. The Company has developed the CoSense End-Tidal Carbon Monoxide Monitor that measures ETCO for the detection of dangerous hemolysis rates. The Infant Solutions product line, including the NeoPIP Infant Resuscitator Unit and accessories, is designed for controlled and accurate resuscitation of neonates and infants in the clinical environment. Serenz Nasal Relief is a hand-held nasal irrigator that uses carbon dioxide (CO2) gas to wash the nasal passages.
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