Abaxis (ABAX) versus Invivo Therapeutics (NVIV) Financial Review

Abaxis (NASDAQ: ABAX) and Invivo Therapeutics (NASDAQ:NVIV) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Abaxis has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Invivo Therapeutics has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500.

Profitability

This table compares Abaxis and Invivo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abaxis 10.51% 10.09% 8.69%
Invivo Therapeutics N/A -134.23% -109.16%

Insider & Institutional Ownership

99.3% of Abaxis shares are owned by institutional investors. Comparatively, 12.1% of Invivo Therapeutics shares are owned by institutional investors. 4.3% of Abaxis shares are owned by insiders. Comparatively, 3.9% of Invivo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Abaxis and Invivo Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abaxis 1 4 1 0 2.00
Invivo Therapeutics 0 1 0 0 2.00

Abaxis presently has a consensus target price of $56.63, suggesting a potential downside of 17.31%. Invivo Therapeutics has a consensus target price of $6.00, suggesting a potential upside of 1,175.78%. Given Invivo Therapeutics’ higher probable upside, analysts clearly believe Invivo Therapeutics is more favorable than Abaxis.

Earnings & Valuation

This table compares Abaxis and Invivo Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abaxis $227.22 million 6.84 $32.71 million $1.08 63.41
Invivo Therapeutics N/A N/A -$23.43 million ($0.85) -0.55

Abaxis has higher revenue and earnings than Invivo Therapeutics. Invivo Therapeutics is trading at a lower price-to-earnings ratio than Abaxis, indicating that it is currently the more affordable of the two stocks.

Dividends

Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Invivo Therapeutics does not pay a dividend. Abaxis pays out 59.3% of its earnings in the form of a dividend.

Summary

Abaxis beats Invivo Therapeutics on 11 of the 14 factors compared between the two stocks.

About Abaxis

Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.

About Invivo Therapeutics

InVivo Therapeutics Holdings Corp., formerly Design Source, Inc., is a research and clinical-stage biomaterials and biotechnology company. The Company is engaged in developing and commercializing biopolymer-scaffolding devices for the treatment of spinal cord injuries (SCI). The Company’s approach to treating acute SCIs is based on its investigational Neuro Spinal Scaffold implant, an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury. The Neuro-Spinal Scaffold consists of biocompatible and bioresorbable polymers, which include poly lactic-co-glycolic acid (PLGA) and Poly-L-Lysine (PLL). The Company is also evaluating other technologies and therapeutics that may be complementary to its development of the Neuro-Spinal Scaffold implant. The Company has a clinical development program for acute SCI and a preclinical development program for chronic SCI.

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