Meridian Bioscience (NASDAQ: VIVO) and Capnia (NASDAQ:SLNO) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitabiliy, risk, analyst recommendations and dividends.
Institutional & Insider Ownership
86.4% of Meridian Bioscience shares are owned by institutional investors. Comparatively, 34.8% of Capnia shares are owned by institutional investors. 2.3% of Meridian Bioscience shares are owned by insiders. Comparatively, 69.8% of Capnia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Meridian Bioscience and Capnia’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Meridian Bioscience||$198.60 million||3.25||$55.72 million||$0.71||21.55|
|Capnia||$1.27 million||20.61||-$11.12 million||($0.91)||-0.60|
Meridian Bioscience has higher revenue and earnings than Capnia. Capnia is trading at a lower price-to-earnings ratio than Meridian Bioscience, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Meridian Bioscience has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Capnia has a beta of 6.69, suggesting that its stock price is 569% more volatile than the S&P 500.
Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. Capnia does not pay a dividend. Meridian Bioscience pays out 70.4% of its earnings in the form of a dividend.
This table compares Meridian Bioscience and Capnia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Meridian Bioscience and Capnia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Meridian Bioscience presently has a consensus target price of $14.33, indicating a potential downside of 6.32%. Capnia has a consensus target price of $5.00, indicating a potential upside of 809.09%. Given Capnia’s stronger consensus rating and higher possible upside, analysts clearly believe Capnia is more favorable than Meridian Bioscience.
Meridian Bioscience beats Capnia on 8 of the 15 factors compared between the two stocks.
About Meridian Bioscience
Meridian Bioscience, Inc. is a life science company engaged in the development, manufacture, sale and distribution of diagnostic test kits for gastrointestinal, viral, respiratory and parasitic infectious diseases, and elevated blood lead levels, and the manufacture and distribution of bulk antigens, antibodies, polymerase chain reaction (PCR)/quantitative PCR (qPCR) reagents, nucleotides, competent cells and bioresearch reagents used by researchers and other diagnostic manufacturers. Its segments include Diagnostics and Life Science. The Diagnostics segment includes manufacturing operations in Cincinnati, and the sale and distribution of diagnostic test kits in the countries consisting of North, Central and South America; Europe, the Middle East and Africa (EMEA), and other countries outside of the Americas and EMEA. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany, and Sydney, Australia.
Soleno Therapeutics, Inc., formerly Capnia, Inc., is a healthcare company that develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. The Company offers products, such as CoSense end-tidal carbon monoxide (ETCO) Monitor, NeoPIP Infant Resuscitator and Accessories, and Serenz Nasal Relief. The Company has developed the CoSense End-Tidal Carbon Monoxide Monitor that measures ETCO for the detection of dangerous hemolysis rates. The Infant Solutions product line, including the NeoPIP Infant Resuscitator Unit and accessories, is designed for controlled and accurate resuscitation of neonates and infants in the clinical environment. Serenz Nasal Relief is a hand-held nasal irrigator that uses carbon dioxide (CO2) gas to wash the nasal passages.
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