MiMedx Group (MDXG) versus Cardiovascular Systems (CSII) Critical Review

MiMedx Group (NASDAQ: MDXG) and Cardiovascular Systems (NASDAQ:CSII) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Earnings and Valuation

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This table compares MiMedx Group and Cardiovascular Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MiMedx Group $245.01 million 2.93 $11.97 million $0.12 53.83
Cardiovascular Systems $204.91 million 3.71 -$1.79 million $0.03 762.33

MiMedx Group has higher revenue and earnings than Cardiovascular Systems. MiMedx Group is trading at a lower price-to-earnings ratio than Cardiovascular Systems, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

MiMedx Group has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Cardiovascular Systems has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.

Profitability

This table compares MiMedx Group and Cardiovascular Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MiMedx Group 11.64% 17.49% 12.69%
Cardiovascular Systems -1.62% -0.50% -0.31%

Insider and Institutional Ownership

80.4% of MiMedx Group shares are owned by institutional investors. Comparatively, 82.6% of Cardiovascular Systems shares are owned by institutional investors. 12.4% of MiMedx Group shares are owned by insiders. Comparatively, 3.3% of Cardiovascular Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MiMedx Group and Cardiovascular Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MiMedx Group 1 2 2 0 2.20
Cardiovascular Systems 1 4 1 0 2.00

MiMedx Group currently has a consensus target price of $14.75, indicating a potential upside of 128.33%. Cardiovascular Systems has a consensus target price of $26.50, indicating a potential upside of 15.87%. Given MiMedx Group’s stronger consensus rating and higher possible upside, research analysts plainly believe MiMedx Group is more favorable than Cardiovascular Systems.

Summary

MiMedx Group beats Cardiovascular Systems on 10 of the 13 factors compared between the two stocks.

About MiMedx Group

MiMedx Group, Inc., a biopharmaceutical company, develops and markets regenerative biologics utilizing human placental tissue allografts with patent-protected processes for various sectors of healthcare. It processes the human placental tissue utilizing its proprietary PURION Process to produce allografts. The company's proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. Its biomaterial platform technologies include AmnioFix and EpiFix that are tissue technologies processed from human amniotic membrane derived from donated placental tissue for homologous applications; OrthoFlo, an amniotic fluid-derived allograft for homologous applications; Physio, a bone grafting material comprising 100% bone tissue with no added carrier; and CollaFix, a technology platform derived from collagen fiber technology designed to mimic the natural composition, structure, and mechanical properties of musculoskeletal tissues to augment their repair. The company also offers EpiCord, an umbilical cord allograft that provides a connective tissue matrix to replace or supplement damaged or inadequate integumental tissue; AmnioCord, an umbilical cord allograft that offers a protective environment for the healing process; and AmnioFill, a cellular tissue matrix allograft that enhances healing. Its products have applications in the areas of wound care, burns, surgery, orthopedics, spine, sports medicine, ophthalmology, and dentistry. The company sells its products through direct sales force, and independent stocking distributors, and third party representatives in the United States, as well as independent distributors internationally. MiMedx Group, Inc. is headquartered in Marietta, Georgia.

About Cardiovascular Systems

Cardiovascular Systems, Inc. is a medical technology company. The Company is engaged in treating patients suffering from peripheral and coronary artery diseases, including those with arterial calcium. The Company develops an orbital atherectomy technology for both peripheral and coronary commercial applications. Its peripheral artery disease (PAD) systems are catheter-based platforms capable of treating a range of plaque types in leg arteries both above and below the knee. Its products include Diamondback 360 Peripheral Orbital Atherectomy System (OAS) (Diamondback 360 Peripheral), the Stealth 360 OAS (Stealth 360), Diamondback 360 Peripheral, Diamondback 360 60cm Peripheral, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral and Diamondback 360 2.00 Peripheral. The Company’s coronary arterial disease (CAD) product, Diamondback 360 Coronary OAS (Coronary OAS), is marketed as a treatment for severely calcified coronary arteries.

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