Financial Comparison: Covalon Technologies (OTCMKTS:CVALF) & Apyx Medical (NASDAQ:APYX)

Apyx Medical (NASDAQ:APYX) and Covalon Technologies (OTCMKTS:CVALF) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Valuation and Earnings

This table compares Apyx Medical and Covalon Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apyx Medical	$52.84 million	2.48	-$11.21 million	($0.20)	-15.55
Covalon Technologies	$23.43 million	1.97	$1.47 million	$0.04	41.70

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Apyx Medical and Covalon Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apyx Medical	1	1	4	1	2.71
Covalon Technologies	0	0	0	0	0.00

Apyx Medical presently has a consensus price target of $6.60, suggesting a potential upside of 112.22%. Given Apyx Medical’s stronger consensus rating and higher possible upside, equities analysts plainly believe Apyx Medical is more favorable than Covalon Technologies.

Profitability

This table compares Apyx Medical and Covalon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apyx Medical	-14.78%	-76.60%	-13.91%
Covalon Technologies	5.05%	5.77%	4.82%

Institutional and Insider Ownership

55.3% of Apyx Medical shares are owned by institutional investors. 15.9% of Apyx Medical shares are owned by 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.

Volatility & Risk

Apyx Medical has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Covalon Technologies has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Summary

Apyx Medical beats Covalon Technologies on 9 of the 15 factors compared between the two stocks.

About Apyx Medical

Apyx Medical Corporation, an energy technology company, engages in the design, development, and manufacture of medical devices in the United States and internationally. The company operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). It offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. The company's Helium Plasma Technology products are marketed and sold under the Renuvion name in the cosmetic surgery market and under the J-Plasma name in the hospital surgical market. It also develops and manufactures various hand pieces for open and laparoscopic procedures; and OEM generators, as well as related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.

About Covalon Technologies

Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of medical products in infection management, advanced wound care, and surgical procedure areas in the United States, Canada, the Middle East, Asia, Latin America, and internationally. The company’s platform technologies comprise collagen matrix platform that is used to manufacture a family of products to treat chronic and infected wounds, including diabetic ulcers, pressure ulcers, venous ulcers, donor and graft sites, traumatic wounds healing by secondary intention, dehisced surgical wounds, and first and second degree burns; and antimicrobial silicone adhesive platform, which is used for family of pre and post-surgical, and vascular access products that are designed to kill bacteria or yeast that comes into contact with the antimicrobial silicone providing broad-spectrum antimicrobial activity. It also offers medical coating platform, a process that utilizes photo-polymerization to create active grafting sites where new polymer chains are initiated and propagated from the surface of an existing medical device. In addition, the company provides wound care dressings; surgical and peri-operative; and infection management products. It offers its products under the Covalon brand name through third-party distribution networks and company’s direct sales force. The company serves hospitals, wound care centers, burn centers, extended/alternate care and acute care facilities, home health care agencies, and physicians’ offices. Covalon Technologies Ltd. is headquartered in Mississauga, Canada.