Head to Head Analysis: BioTelemetry (BEAT) versus BG Medicine (BGMD)

BioTelemetry (NASDAQ: BEAT) and BG Medicine (OTCMKTS:BGMD) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

82.2% of BioTelemetry shares are owned by institutional investors. 9.6% of BioTelemetry shares are owned by company insiders. Comparatively, 6.5% of BG Medicine shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares BioTelemetry and BG Medicine’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioTelemetry $208.33 million 4.30 $53.43 million $1.29 21.43
BG Medicine $1.57 million 0.29 -$5.30 million N/A N/A

BioTelemetry has higher revenue and earnings than BG Medicine.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BioTelemetry and BG Medicine, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioTelemetry 1 0 7 0 2.75
BG Medicine 0 0 0 0 N/A

BioTelemetry presently has a consensus target price of $43.50, indicating a potential upside of 57.32%. Given BioTelemetry’s higher possible upside, research analysts plainly believe BioTelemetry is more favorable than BG Medicine.

Profitability

This table compares BioTelemetry and BG Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioTelemetry 16.10% 13.66% 8.44%
BG Medicine N/A N/A N/A

Risk & Volatility

BioTelemetry has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, BG Medicine has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Summary

BioTelemetry beats BG Medicine on 10 of the 11 factors compared between the two stocks.

About BioTelemetry

BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).

About BG Medicine

BG Medicine, Inc. (BG Medicine) is a commercial-stage diagnostics company. The Company is engaged in commercializing diagnostic products that may be used to help guide the care and management of patients suffering from heart failure and related disorders. The Company’s BGM Galectin-3 Test is an in vitro diagnostic device that employs a manual micro-titer platform to measure galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of chronic heart failure in conjunction with clinical evaluation. The automated galectin-3 tests are being developed and commercialized by its diagnostic instrument manufacturing partners and will be performed on its partners’ automated platforms. The Company’s CardioSCORE test is a multi-analyte biomarker-based blood test that was designed as an aid in the assessment of near-term risk for atherothrombotic cardiovascular events, such as heart attack and ischemic stroke.

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