Financial Comparison: GenMark Diagnostics (GNMK) & Neovasc Inc (US) (NVCN)

GenMark Diagnostics (NASDAQ: GNMK) and Neovasc Inc (US) (NASDAQ:NVCN) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Insider & Institutional Ownership

19.2% of Neovasc Inc (US) shares are owned by institutional investors. 7.5% of GenMark Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

GenMark Diagnostics has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Neovasc Inc (US) has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GenMark Diagnostics and Neovasc Inc (US), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GenMark Diagnostics 0 1 5 0 2.83
Neovasc Inc (US) 0 0 3 0 3.00

GenMark Diagnostics currently has a consensus price target of $11.80, indicating a potential upside of 179.62%. Neovasc Inc (US) has a consensus price target of $6.33, indicating a potential upside of 779.63%. Given Neovasc Inc (US)’s stronger consensus rating and higher probable upside, analysts clearly believe Neovasc Inc (US) is more favorable than GenMark Diagnostics.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GenMark Diagnostics $49.27 million 4.69 -$50.60 million ($1.22) -3.46
Neovasc Inc (US) $9.51 million 5.98 -$86.49 million $0.24 3.00

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

Profitability

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

Net Margins Return on Equity Return on Assets
GenMark Diagnostics -116.76% -100.33% -57.22%
Neovasc Inc (US) 268.35% -85.81% 23.39%

Summary

Neovasc Inc (US) beats GenMark Diagnostics on 8 of the 13 factors compared between the two stocks.

About GenMark Diagnostics

GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.

About Neovasc Inc (US)

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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