Financial Contrast: Neovasc Inc (US) (NVCN) versus Abaxis (ABAX)

Neovasc Inc (US) (NASDAQ: NVCN) and Abaxis (NASDAQ:ABAX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk and Volatility

Neovasc Inc (US) has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Abaxis has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Neovasc Inc (US) and Abaxis’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neovasc Inc (US) $9.51 million 2.32 -$86.49 million $0.24 1.17
Abaxis $227.22 million 6.90 $32.71 million $1.08 63.94

Abaxis has higher revenue and earnings than Neovasc Inc (US). Neovasc Inc (US) is trading at a lower price-to-earnings ratio than Abaxis, indicating that it is currently the more affordable of the two stocks.

Dividends

Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Neovasc Inc (US) does not pay a dividend. Abaxis pays out 59.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

32.8% of Neovasc Inc (US) shares are owned by institutional investors. Comparatively, 99.3% of Abaxis shares are owned by institutional investors. 4.3% of Abaxis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Neovasc Inc (US) and Abaxis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neovasc Inc (US) 268.35% -85.81% 23.39%
Abaxis 10.51% 10.09% 8.69%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Neovasc Inc (US) and Abaxis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neovasc Inc (US) 0 0 4 0 3.00
Abaxis 1 4 1 0 2.00

Neovasc Inc (US) currently has a consensus target price of $3.35, indicating a potential upside of 1,096.43%. Abaxis has a consensus target price of $56.63, indicating a potential downside of 18.01%. Given Neovasc Inc (US)’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Neovasc Inc (US) is more favorable than Abaxis.

Summary

Abaxis beats Neovasc Inc (US) on 10 of the 16 factors compared between the two stocks.

About Neovasc Inc (US)

Neovasc Inc. (Neovasc) is a specialty medical device company. The Company develops, manufactures and markets products for the cardiovascular marketplace. The Company’s segment is the development, manufacture and marketing of medical devices. Its products include the Tiara technology in development for the transcatheter treatment of mitral valve disease, the Neovasc Reducer for the treatment of refractory angina, and tissue products. The Tiara is in preclinical/early clinical stage development to provide a minimally invasive transcatheter device for patients experiencing mitral regurgitation (MR) as a result of mitral heart valve disease. The Reducer is an hourglass-shaped, balloon-expandable, stainless steel, bare metal device, which is implanted in the coronary sinus, creating a restriction in venous outflow from the myocardium (the muscular layer of the heart wall). Neovasc produces Peripatch, a biological tissue product that is manufactured from pericardium.

About Abaxis

Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.

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