Financial Analysis: Luminex (LMNX) versus Neovasc Inc (US) (NVCN)

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

Insider and Institutional Ownership

79.2% of Luminex shares are held by institutional investors. Comparatively, 19.0% of Neovasc Inc (US) shares are held by institutional investors. 6.9% of Luminex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Luminex pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Neovasc Inc (US) does not pay a dividend. Luminex pays out 35.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Luminex and Neovasc Inc (US), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luminex 1 3 0 0 1.75
Neovasc Inc (US) 0 0 3 0 3.00

Luminex presently has a consensus target price of $19.33, suggesting a potential downside of 3.24%. Neovasc Inc (US) has a consensus target price of $6.33, suggesting a potential upside of 905.29%. Given Neovasc Inc (US)’s stronger consensus rating and higher probable upside, analysts plainly believe Neovasc Inc (US) is more favorable than Luminex.

Profitability

This table compares Luminex and Neovasc Inc (US)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luminex 9.52% 6.01% 5.47%
Neovasc Inc (US) 268.35% -85.81% 23.39%

Valuation and Earnings

This table compares Luminex and Neovasc Inc (US)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luminex $270.64 million 3.25 $13.81 million $0.67 29.82
Neovasc Inc (US) $9.51 million 5.23 -$86.49 million $0.24 2.63

Luminex has higher revenue and earnings than Neovasc Inc (US). Neovasc Inc (US) is trading at a lower price-to-earnings ratio than Luminex, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Luminex has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Neovasc Inc (US) has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500.

Summary

Luminex beats Neovasc Inc (US) on 9 of the 16 factors compared between the two stocks.

Luminex Company Profile

Luminex Corporation develops, manufactures and sells biological testing technologies with applications throughout the diagnostics, pharmaceutical and life sciences industries. The Company’s products are focused on the molecular diagnostic testing market, which includes human genetics, personalized medicine and infectious disease segments. The Company has a range of instruments using its xMAP technology, which includes its LUMINEX 100/200 systems offer 100-plex testing; the Company’s FLEXMAP 3D system is its high-throughput, 500-plex testing system, and its MAGPIX system provides 50-plex testing using imaging rather than flow cytometry. By using its xMAP technology, the end users are able to generate multiple simultaneous results per sample. The Company primarily serves the diagnostics, pharmaceutical and life sciences industries by marketing products, including its testing equipment and assays, to a range of testing laboratories.

Neovasc Inc (US) Company Profile

Neovasc Inc. (Neovasc) is a specialty medical device company. The Company develops, manufactures and markets products for the cardiovascular marketplace. The Company’s segment is the development, manufacture and marketing of medical devices. Its products include the Tiara technology in development for the transcatheter treatment of mitral valve disease, the Neovasc Reducer for the treatment of refractory angina, and tissue products. The Tiara is in preclinical/early clinical stage development to provide a minimally invasive transcatheter device for patients experiencing mitral regurgitation (MR) as a result of mitral heart valve disease. The Reducer is an hourglass-shaped, balloon-expandable, stainless steel, bare metal device, which is implanted in the coronary sinus, creating a restriction in venous outflow from the myocardium (the muscular layer of the heart wall). Neovasc produces Peripatch, a biological tissue product that is manufactured from pericardium.

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