Critical Survey: Quidel (NASDAQ:QDEL) vs. Edap Tms (EDAP)

Quidel (NASDAQ: QDEL) and Edap Tms (NASDAQ:EDAP) are both small-cap advanced medical equipment & technology – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

92.7% of Quidel shares are held by institutional investors. Comparatively, 10.3% of Edap Tms shares are held by institutional investors. 22.0% of Quidel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Quidel has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Edap Tms has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Quidel and Edap Tms’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quidel $191.60 million 8.15 -$13.80 million ($0.16) -286.88
Edap Tms $39.28 million 1.99 $4.25 million ($0.08) -33.75

Edap Tms has lower revenue, but higher earnings than Quidel. Quidel is trading at a lower price-to-earnings ratio than Edap Tms, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Quidel and Edap Tms, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quidel 0 0 6 0 3.00
Edap Tms 0 0 1 0 3.00

Quidel presently has a consensus target price of $50.00, indicating a potential upside of 8.93%. Edap Tms has a consensus target price of $6.50, indicating a potential upside of 140.74%. Given Edap Tms’ higher possible upside, analysts clearly believe Edap Tms is more favorable than Quidel.

Profitability

This table compares Quidel and Edap Tms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quidel -2.33% -2.36% -1.25%
Edap Tms -5.36% 7.85% 4.24%

Summary

Quidel beats Edap Tms on 7 of the 13 factors compared between the two stocks.

About Quidel

Quidel Corporation is engaged in the development, manufacturing and marketing of diagnostic testing solutions. These diagnostic testing solutions are separated into four product categories: immunoassays, molecular assays, virology and specialty products. The Company sells its products directly to end users and distributors, in each case, for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, universities, retail clinics, pharmacies and wellness screening centers. Its diagnostic solutions aid in the detection and diagnosis of critical diseases and other medical conditions, including infectious diseases, women’s health, gastrointestinal diseases, autoimmune diseases, bone health and thyroid diseases. The Company provides diagnostic testing solutions under various brand names, including Quidel, QuickVue, QuickVue+, MicroVue, FreshCells, D3 FastPoint, Super E-Mix, ELVIS, Sofia, Quidel Molecular, Amplivue, Lyra and Thyretain.

About Edap Tms

EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.

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