Reviewing Cardiovascular Systems (CSII) & Neogen (NASDAQ:NEOG)

Cardiovascular Systems (NASDAQ: CSII) and Neogen (NASDAQ:NEOG) are both medical equipment, supplies & distribution – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Cardiovascular Systems and Neogen, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardiovascular Systems 1 4 1 0 2.00
Neogen 0 4 0 0 2.00

Cardiovascular Systems presently has a consensus target price of $31.50, suggesting a potential upside of 23.43%. Neogen has a consensus target price of $61.33, suggesting a potential upside of 4.06%. Given Cardiovascular Systems’ higher possible upside, analysts clearly believe Cardiovascular Systems is more favorable than Neogen.

Profitability

This table compares Cardiovascular Systems and Neogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardiovascular Systems -0.93% 0.74% 0.47%
Neogen 13.47% 10.72% 9.57%

Institutional and Insider Ownership

75.3% of Cardiovascular Systems shares are owned by institutional investors. Comparatively, 66.2% of Neogen shares are owned by institutional investors. 3.3% of Cardiovascular Systems shares are owned by company insiders. Comparatively, 4.2% of Neogen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cardiovascular Systems and Neogen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardiovascular Systems $204.91 million 4.25 -$1.79 million ($0.06) -425.33
Neogen $361.59 million 8.40 $43.79 million $1.01 58.65

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

Volatility and Risk

Cardiovascular Systems has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Neogen has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Summary

Neogen beats Cardiovascular Systems on 9 of the 13 factors compared between the two stocks.

Cardiovascular Systems Company Profile

Cardiovascular Systems, Inc. is a medical technology company. The Company is engaged in treating patients suffering from peripheral and coronary artery diseases, including those with arterial calcium. The Company develops an orbital atherectomy technology for both peripheral and coronary commercial applications. Its peripheral artery disease (PAD) systems are catheter-based platforms capable of treating a range of plaque types in leg arteries both above and below the knee. Its products include Diamondback 360 Peripheral Orbital Atherectomy System (OAS) (Diamondback 360 Peripheral), the Stealth 360 OAS (Stealth 360), Diamondback 360 Peripheral, Diamondback 360 60cm Peripheral, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral and Diamondback 360 2.00 Peripheral. The Company’s coronary arterial disease (CAD) product, Diamondback 360 Coronary OAS (Coronary OAS), is marketed as a treatment for severely calcified coronary arteries.

Neogen Company Profile

Neogen Corporation develops, manufactures and markets a range of products and services dedicated to food and animal safety. The Company operates through two segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a range of consumable products marketed to veterinarians and animal health product distributors. The Animal Safety segment also provides genetic identification services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents and disease in and around agricultural, food production and other facilities.

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