Contrasting Invacare (NYSE:IVC) & Sanara MedTech (NASDAQ:SMTI)

Invacare (NYSE:IVCGet Rating) and Sanara MedTech (NASDAQ:SMTIGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Invacare and Sanara MedTech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invacare 0 0 2 0 3.00
Sanara MedTech 0 0 1 0 3.00

Invacare currently has a consensus target price of $8.50, indicating a potential upside of 558.91%. Sanara MedTech has a consensus target price of $45.00, indicating a potential upside of 111.27%. Given Invacare’s higher probable upside, equities analysts clearly believe Invacare is more favorable than Sanara MedTech.

Profitability

This table compares Invacare and Sanara MedTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invacare -6.35% -15.20% -3.84%
Sanara MedTech -36.63% -31.14% -26.84%

Risk and Volatility

Invacare has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Sanara MedTech has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Institutional and Insider Ownership

89.9% of Invacare shares are held by institutional investors. Comparatively, 4.4% of Sanara MedTech shares are held by institutional investors. 6.9% of Invacare shares are held by company insiders. Comparatively, 59.2% of Sanara MedTech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Invacare and Sanara MedTech’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Invacare $872.46 million 0.05 -$45.56 million ($1.60) -0.81
Sanara MedTech $24.14 million 7.04 -$7.92 million ($1.32) -16.14

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

Summary

Invacare beats Sanara MedTech on 7 of the 12 factors compared between the two stocks.

Invacare Company Profile (Get Rating)

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company offers mobility and seating products, such as power wheelchairs under the Invacare TDX brand; custom manual wheelchairs under the Invacare, Invacare Top End, and Küschall brand names; and seating and positioning products under the Invacare brand, as well as custom molded seat modules under the PinDot brand. It also provides lifestyle products, including pressure relieving overlays and mattress systems under the Invacare Softform and microAIR brands; safe patient handling products under the Birdie, Evo, and ISA brands; residential and institutional care beds and bed accessories, and manual wheelchairs under the Invacare brand name; and personal care products. In addition, the company offers respiratory therapy products comprising stationary oxygen concentrators under the Platinum and Perfecto2 brands; portable oxygen concentrators under the Platinum brand; and Invacare HomeFill oxygen systems. Further, it provides repair, equipment rentals, and external contracting services, as well as distributes heart rate monitors, thermometers, and nebulizers; and portable ramps. The company sells its products primarily to home medical equipment providers through retail and e-commerce channels, as well as to residential care operators, dealers, and government health service customers through its sales force, independent manufacturers' representatives, and distributors. Invacare Corporation was founded in 1885 and is headquartered in Elyria, Ohio.

Sanara MedTech Company Profile (Get Rating)

Sanara MedTech Inc. develops, markets, and distributes wound and skin care products to physicians, hospitals, clinics, and post-acute care settings in the United States. It offers CellerateRX Surgical Activated Collagen powder and gel that are used in a range of surgical specialties to help promote patient healing; Biako¯s Antimicrobial Skin and Wound Cleanser, a patented product that disrupts extracellular polymeric substances to eradicate mature biofilm microbes; Biako¯s Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing helps against planktonic microbes, as well as immature and mature biofilms; and Biako¯s Antimicrobial Skin and Wound Irrigation Solution. The company also provides HYCOL Hydrolyzed Collagen Powder and Gel, a medical hydrolysate of Type I bovine collagen for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers. In addition, it develops FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; and VIM Amnion Matrix, a single layer sheet of amnion tissue. The company was formerly known as WNDM Medical Inc. and changed its name to Sanara MedTech Inc. in May 2019. Sanara MedTech Inc. was incorporated in 2001 and is based in Fort Worth, Texas.

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