Cutera (CUTR) & Aradigm (ARDM) Head-To-Head Analysis

Cutera (NASDAQ: ARDM) and Aradigm (NASDAQ:ARDM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Risk & Volatility

Cutera has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Aradigm has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cutera and Aradigm’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cutera $151.49 million 3.12 $29.99 million $0.77 44.29
Aradigm $14.47 million 1.37 -$10.70 million ($0.72) -1.81

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Cutera and Aradigm, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cutera 0 2 3 0 2.60
Aradigm 0 1 0 0 2.00

Cutera currently has a consensus price target of $50.67, indicating a potential upside of 48.58%. Aradigm has a consensus price target of $10.00, indicating a potential upside of 669.23%. Given Aradigm’s higher possible upside, analysts clearly believe Aradigm is more favorable than Cutera.

Insider and Institutional Ownership

95.8% of Cutera shares are owned by institutional investors. Comparatively, 30.3% of Aradigm shares are owned by institutional investors. 1.8% of Cutera shares are owned by insiders. Comparatively, 4.5% of Aradigm shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cutera and Aradigm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cutera 15.67% 10.21% 6.17%
Aradigm -83.04% N/A -125.01%

Summary

Cutera beats Aradigm on 11 of the 14 factors compared between the two stocks.

Cutera Company Profile

Cutera, Inc., a medical device company, designs, develops, manufactures, markets, and services laser and other energy based aesthetics systems worldwide. The company offers enlighten platform, a laser system that is used for tattoo removal, as well as for the treatment of benign pigmented lesions; excel HR platform, a hair removal solution for various skin types; and truSculpt, a high-powered radio frequency platform designed for deep tissue heating. It also provides excel V, a vascular and benign pigmented lesion treatment platform; xeo platform, a multi-application platform on which a customer purchases hand piece applications for the removal of unwanted hair, treatment of vascular lesions, and skin rejuvenation by treating discoloration, fine lines, and laxity; Juliet, a laser system for vaginal health; and Secret RF, a fractional radio frequency microneedling device for skin rejuvenation. In addition, the company offers GenesisPlus system, a laser product for use in the temporary increase of clear nails in patients with onychomycosis, as well as for the treatment of fine wrinkles, diffuse redness, and rosacea; and CoolGlide, as well as myQ, a third-party sourced system for the Japanese market. Further, it provides pulsed light hand pieces for the treatment of discoloration, hair removal, and vascular treatments; Pearl and Pearl Fractional hand pieces; and post-warranty services through extended service contracts or direct billing, as well as offers Titan hand piece refills and marketing brochures through the Internet. The company markets and sells its products through direct sales force to plastic surgeons, dermatologists, gynecologists, family practitioners, primary care physicians, physicians performing aesthetic treatments in non-medical offices, and other qualified practitioners, as well as for physicians offering aesthetic treatments in non-medical offices. Cutera, Inc. was founded in 1998 and is headquartered in Brisbane, California.

Aradigm Company Profile

Aradigm Corporation, a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. Its lead development candidates are proprietary formulations of the potent antibiotic ciprofloxacin, including Linhaliq and Lipoquin that are delivered by inhalation for the management of infections associated with severe respiratory diseases, including non-cystic fibrosis bronchiectasis, cystic fibrosis, and non-tuberculosis mycobacterium. The company is also developing inhaled ciprofloxacin formulations for treatment of patients with cystic fibrosis, and has tested for the prevention and treatment of inhaled bioterrorism infections, such as Coxiella burnetii or Q fever, inhalation anthrax, tularemia, melioidosis and pneumonic plague. Aradigm Corporation has collaboration agreements with Grifols, S.A. The company was founded in 1991 and is headquartered in Hayward, California.

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