Abaxis (NASDAQ: ABAX) and MTS Systems (NASDAQ:MTSC) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Risk & Volatility
Abaxis has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, MTS Systems has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Abaxis and MTS Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Abaxis currently has a consensus price target of $58.33, indicating a potential downside of 29.80%. MTS Systems has a consensus price target of $70.00, indicating a potential upside of 34.23%. Given MTS Systems’ stronger consensus rating and higher probable upside, analysts clearly believe MTS Systems is more favorable than Abaxis.
Abaxis pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Abaxis pays out 55.8% of its earnings in the form of a dividend. MTS Systems pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MTS Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Abaxis and MTS Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Abaxis and MTS Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Abaxis||$244.70 million||7.77||$27.17 million||$1.29||64.42|
|MTS Systems||$787.96 million||1.18||$25.08 million||$2.22||23.49|
Abaxis has higher earnings, but lower revenue than MTS Systems. MTS Systems is trading at a lower price-to-earnings ratio than Abaxis, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
93.6% of Abaxis shares are held by institutional investors. Comparatively, 98.1% of MTS Systems shares are held by institutional investors. 4.3% of Abaxis shares are held by insiders. Comparatively, 1.8% of MTS Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Abaxis Company Profile
Abaxis, Inc. develops, manufactures, markets, and sells portable blood analysis systems for use in human or veterinary patient care settings to provide rapid blood constituent measurements for clinicians worldwide. It operates in two segments, Medical Market and Veterinary Market. The company offers Piccolo chemistry analyzers with rapid blood constituent measurements for use in human patient care; and Piccolo profiles that are single-use medical reagents. It also provides VetScan VS2, a chemistry, electrolyte, immunoassay, and blood gas analyzer delivering results from a sample of whole blood, serum, or plasma; VetScan profiles, which are packaged as single-use plastic veterinary reagent discs; and VetScan HM5, VetScan HM2, VetScan HMII, and VetScan HMT hematology instruments, as well as reagent kits for veterinary applications. In addition, the company offers VetScan VSpro that assists the diagnosis and evaluation of suspected bleeding disorders, toxicity/poisoning, disseminated intravascular coagulation evaluation, hepatic disease, monitoring therapy, and disease progression states; VetScan VSpro coagulation test to evaluate prothrombin and the activated partial thromboplastin times; VetScan VSpro fibrinogen test for in-vitro determination of fibrinogen levels in equine platelet poor plasma from a citrated stabilized whole blood sample; and i-STAT that delivers blood gas, electrolyte, chemistry, and hematology results. Further, it provides VetScan rapid tests for the detection of various diseases, as well as sells products developed through its patented Orbos discrete lyophilization process to companies for other applications. The company sells its products through direct sales force and independent distributors. Abaxis, Inc. was founded in 1989 and is headquartered in Union City, California.
MTS Systems Company Profile
MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The company's Test segment offers road simulators and component test systems for durability testing; vehicle performance test systems; vehicle dynamics simulators; electrical motors and energy recovery systems; tire performance and rolling resistance measurement systems; and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties, including ceramics, composites, and steel; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as various accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, oil and gas, structural engineering, and other industries. The company's Sensors segment offers sensors for acceleration, position, vibration, motion, pressure, force, and sound measurement; and piezoelectric sensors and components for vibration, pressure, and force measurement. It serves automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent distributors, as well as through catalogs, Internet, etc. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.
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