Contrasting Neovasc (NVCN) and Endologix (ELGX)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Neovasc -3,427.42% N/A -79.39%
Endologix -40.92% -69.06% -12.50%

Institutional & Insider Ownership

21.2% of Neovasc shares are held by institutional investors. Comparatively, 93.8% of Endologix shares are held by institutional investors. 4.1% of Endologix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Neovasc and Endologix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neovasc 0 0 2 0 3.00
Endologix 1 6 1 0 2.00

Neovasc presently has a consensus target price of $1.25, suggesting a potential upside of 3,461.25%. Endologix has a consensus target price of $4.00, suggesting a potential upside of 64.61%. Given Neovasc’s stronger consensus rating and higher probable upside, research analysts clearly believe Neovasc is more favorable than Endologix.

Valuation & Earnings

This table compares Neovasc and Endologix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neovasc $5.39 million 12.21 -$22.90 million ($0.37) -0.09
Endologix $181.16 million 1.14 -$66.40 million ($0.48) -5.06

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

Volatility and Risk

Neovasc has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Endologix has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Summary

Neovasc beats Endologix on 9 of the 14 factors compared between the two stocks.

Neovasc Company Profile

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.

Endologix Company Profile

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. It offers minimally-invasive endovascular repair (EVAR) products, including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the ovation abdominal stent graft system. The company also provides endovascular sealing (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, it offers proximal aortic extensions and limb extensions which allows physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. The company offers its EVAR products under Ovation, Powerlink System, IntuiTrak, AFX, VELA Proximal Endograft brand names; and EVAS products under the Nellix EVAS system brand name. It sells its products through direct sales force, network of agents, and independent distributors or agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California.

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