Critical Contrast: BioTelemetry (BEAT) vs. Cannabis Science (CBIS)

BioTelemetry (NASDAQ: BEAT) and Cannabis Science (OTCMKTS:CBIS) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

77.9% of BioTelemetry shares are owned by institutional investors. 9.6% of BioTelemetry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares BioTelemetry and Cannabis Science’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioTelemetry 16.10% 13.66% 8.44%
Cannabis Science -953,196.00% N/A -380.46%

Analyst Ratings

This is a summary of current recommendations for BioTelemetry and Cannabis Science, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioTelemetry 1 0 7 0 2.75
Cannabis Science 0 0 0 0 N/A

BioTelemetry presently has a consensus target price of $43.50, suggesting a potential upside of 76.11%. Given BioTelemetry’s higher possible upside, research analysts clearly believe BioTelemetry is more favorable than Cannabis Science.

Volatility and Risk

BioTelemetry has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Cannabis Science has a beta of -4.04, meaning that its share price is 504% less volatile than the S&P 500.

Earnings and Valuation

This table compares BioTelemetry and Cannabis Science’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BioTelemetry $208.33 million 3.84 $53.43 million $1.29 19.15
Cannabis Science N/A N/A N/A ($0.01) -3.30

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

Summary

BioTelemetry beats Cannabis Science on 10 of the 10 factors compared between the two stocks.

About BioTelemetry

BioTelemetry, Inc. (BioTelemetry), formerly CardioNet, Inc., provides cardiac monitoring services, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The Company operates in three segments: patient services, product and research services. The patient services business segment’s principal focus is on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders, through its core Mobile Cardiac Outpatient Telemetry(MCOT), event and Holter services in a healthcare setting. The product business segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. The Company’s research services focuses on providing cardiac safety monitoring services for drug and medical treatment trials in a research environment. In August 2012, the Company completed the acquisition of Cardiocore Lab, Inc. (Cardiocore).

About Cannabis Science

Cannabis Science, Inc. is engaged in medical marijuana research and development. The Company works on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. The Company is involved in the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance. The Company focuses on the development of governmentally approved pharmaceuticals, including CS-TATI1, CS-S/BCC-1 and neurological therapy under study or development. The Company’s subsidiaries include Cannabis Science BV and Cannabis Science International Holding BV.

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