Critical Analysis: KORU Medical Systems (NASDAQ:KRMD) and Health Catalyst (NASDAQ:HCAT)

Health Catalyst (NASDAQ:HCATGet Free Report) and KORU Medical Systems (NASDAQ:KRMDGet Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

This table compares Health Catalyst and KORU Medical Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Health Catalyst -34.05% -6.67% -3.21%
KORU Medical Systems -9.49% -22.43% -13.86%

Institutional & Insider Ownership

85.0% of Health Catalyst shares are owned by institutional investors. Comparatively, 58.6% of KORU Medical Systems shares are owned by institutional investors. 2.6% of Health Catalyst shares are owned by company insiders. Comparatively, 20.6% of KORU Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Health Catalyst and KORU Medical Systems”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Health Catalyst $306.58 million 0.50 -$69.50 million ($1.59) -1.35
KORU Medical Systems $33.65 million 7.42 -$6.07 million ($0.08) -67.38

KORU Medical Systems has lower revenue, but higher earnings than Health Catalyst. KORU Medical Systems is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Health Catalyst has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, KORU Medical Systems has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Health Catalyst and KORU Medical Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Health Catalyst 1 8 5 0 2.29
KORU Medical Systems 1 1 3 1 2.67

Health Catalyst currently has a consensus price target of $4.32, indicating a potential upside of 100.85%. KORU Medical Systems has a consensus price target of $6.13, indicating a potential upside of 13.64%. Given Health Catalyst’s higher possible upside, equities analysts plainly believe Health Catalyst is more favorable than KORU Medical Systems.

Summary

Health Catalyst beats KORU Medical Systems on 8 of the 15 factors compared between the two stocks.

About Health Catalyst

(Get Free Report)

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.

About KORU Medical Systems

(Get Free Report)

KORU Medical Systems, Inc. develops and manufactures medical devices and supplies in the United States and internationally. It offers the freedom infusion systems to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Its products include the FREEDOM60 syringe infusion system, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing products. The company was incorporated in 1980 and is based in Mahwah, New Jersey.

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