Critical Comparison: InfuSystem (NYSE:INFU) versus Biostage (OTCMKTS:BSTG)

InfuSystem (NYSE:INFU) and Biostage (OTCMKTS:BSTG) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

71.1% of InfuSystem shares are held by institutional investors. 11.4% of InfuSystem shares are held by company insiders. Comparatively, 15.3% of Biostage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for InfuSystem and Biostage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InfuSystem	0	0	0	3	4.00
Biostage	0	0	0	0	0.00

InfuSystem presently has a consensus target price of $12.50, indicating a potential upside of 15.96%. Given InfuSystem’s stronger consensus rating and higher possible upside, analysts clearly believe InfuSystem is more favorable than Biostage.

Volatility & Risk

InfuSystem has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Biostage has a beta of -1.02, indicating that its stock price is 202% less volatile than the S&P 500.

Profitability

This table compares InfuSystem and Biostage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InfuSystem	1.12%	2.78%	1.41%
Biostage	N/A	N/A	-174.43%

Earnings and Valuation

This table compares InfuSystem and Biostage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InfuSystem	$139.89 million	1.57	$870,000.00	$0.23	46.87
Biostage	N/A	N/A	-$6.07 million	($0.58)	-7.67

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

Summary

InfuSystem beats Biostage on 12 of the 13 factors compared between the two stocks.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

About Biostage

Biostage, Inc., a biotechnology company, offers products to cure patients of cancers, injuries, and birth defects of the gastro-intestinal tract and the airways. The company's pipeline includes organ-regeneration technology for the repair or replacement of diseased or damaged organs, as well as product candidates to treat cancer, injury, and birth defects of the bronchus. Its lead product candidate is Biostage Esophageal Implant for the treatment of severe esophageal disease. The company was formerly known as Harvard Apparatus Regenerative Technology, Inc. and changed its name to Biostage, Inc. in March 2016. Biostage, Inc. was founded in 2009 and is headquartered in Holliston, Massachusetts.