Critical Contrast: Biomerica (BMRA) and BIOLASE (BIOL)

Biomerica (NASDAQ:BMRA) and BIOLASE (NASDAQ:BIOL) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

1.5% of Biomerica shares are held by institutional investors. Comparatively, 34.8% of BIOLASE shares are held by institutional investors. 26.8% of Biomerica shares are held by insiders. Comparatively, 2.1% of BIOLASE shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Biomerica and BIOLASE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Biomerica -31.75% -41.73% -34.79%
BIOLASE -40.31% -72.43% -44.35%

Valuation and Earnings

This table compares Biomerica and BIOLASE’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Biomerica $5.56 million 4.42 -$1.46 million ($0.17) -16.00
BIOLASE $46.93 million 0.61 -$16.85 million N/A N/A

Biomerica has higher earnings, but lower revenue than BIOLASE.

Risk and Volatility

Biomerica has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500. Comparatively, BIOLASE has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Biomerica and BIOLASE, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biomerica 0 0 1 0 3.00
BIOLASE 0 0 0 0 N/A

Biomerica presently has a consensus target price of $7.50, indicating a potential upside of 175.73%. Given Biomerica’s higher possible upside, analysts clearly believe Biomerica is more favorable than BIOLASE.

Summary

Biomerica beats BIOLASE on 8 of the 11 factors compared between the two stocks.

Biomerica Company Profile

Biomerica, Inc., together with its subsidiaries, develops, manufactures, and markets medical diagnostic products for the early detection and monitoring of chronic diseases and medical conditions. The company's diagnostic test kits are used to analyze blood, urine, or fecal samples from patients in the diagnosis of various diseases and other medical complications; or to measure the level of specific hormones, antibodies, antigens, or other substances, which exist in the human body in extremely small concentrations. It primarily focuses on products for gastrointestinal diseases, food intolerances, diabetes, and various esoteric tests. The company offers its products to hospital and clinical laboratories, medical research institutions, medical schools, pharmaceutical companies, chain drugstores, wholesalers, and physicians' offices, as well as to distributors. It operates in Europe, the United States, Asia, South America, the Middle East, and internationally. Biomerica, Inc. was founded in 1971 and is headquartered in Irvine, California.

BIOLASE Company Profile

BIOLASE, Inc., a medical device company, develops, manufactures, markets, and sells laser systems in dentistry and medicine for patients and health care professionals in the United States and internationally. The company offers Waterlase all-tissue dental laser systems for cutting soft and hard tissues; and diode laser systems, which are used to perform soft tissue, pain therapy, and cosmetic procedures, including teeth whitening. Its dental laser systems allow dentists, periodontists, endodontists, oral surgeons, and other dental specialists to perform a range of dental procedures, such as cosmetic, restorative, and complex surgical applications. The company also markets, sells, and distributes dental imaging equipment, including three-dimensional (3D) CAD/CAM intra-oral scanners and digital dentistry software. Its dental imaging products comprise 3Shape Trios intraoral scanners, digital impression systems, and software for taking 3D scans, which are used to design crowns, study models, surgical guides for implant placement, and event orthodontic and athletic appliances. In addition, the company manufactures and sells consumable products and accessories for its laser systems, as well as markets flexible fibers and hand pieces. It sells its products primarily to dentists in general practice through its field sales force and distributor network. BIOLASE, Inc. was founded in 1984 and is headquartered in Irvine, California.

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