Critical Survey: ConforMIS (CFMS) versus China Kanghui (KH)

ConforMIS (NASDAQ: CFMS) and China Kanghui (NYSE:KH) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings & Valuation

This table compares ConforMIS and China Kanghui’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ConforMIS $79.90 million 1.35 -$57.58 million ($1.34) -1.78
China Kanghui N/A N/A N/A $0.72 N/A

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

Insider and Institutional Ownership

35.6% of ConforMIS shares are held by institutional investors. 9.6% of ConforMIS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ConforMIS and China Kanghui, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConforMIS 0 2 3 0 2.60
China Kanghui 0 0 0 0 N/A

ConforMIS presently has a consensus price target of $5.70, suggesting a potential upside of 139.50%.

Profitability

This table compares ConforMIS and China Kanghui’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConforMIS -72.70% -76.88% -51.42%
China Kanghui N/A N/A N/A

ConforMIS Company Profile

ConforMIS, Inc. is a medical technology company. The Company uses its iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants, which are individually sized and shaped, to fit each patient’s anatomy. The Company’s iFit technology platform is applicable to various joints. It offers a line of customized knee implants designed to restore the natural shape of a patient’s knee. It offers iTotal CR, which is a total knee replacement implant. Its iFit technology platform consists of three elements, including iFit Design, its algorithms and computer software that is used to design customized implants and associated single-use patient-specific instrumentation referred to as iJigs, based on computed tomography scans of the patient and to prepare a surgical plan customized for the patient (iView); iFit Printing, which is a three-dimensional printing technology used to manufacture iJigs, and iFit Just-in-Time manufacturing and delivery capabilities.

China Kanghui Company Profile

China Kanghui Holdings is a holding company and conducts all of its business through its two wholly owned subsidiaries in China, Changzhou Kanghui Medical Innovation Co., Ltd. (Changzhou Kanghui) and Beijing Libeier. The Company is a domestic developer, manufacturer and marketer of orthopedic implants in People’s Republic of China. The Company’s orthopedic implant brands are Kanghui and Libeier. It sells two lines of orthopedic implant products, trauma and spine. Its major trauma products, used in the surgical treatment of bone fractures, include a range of nails, plates and screws. Its major spine products, used in the surgical treatment of spine disorders, include screws, meshes, interbody cages and fixation systems. On July 31, 2008, we acquired 100% of the equity interests of Beijing Libeier. On July 31, 2009, the Company established Shanghai Zhikang Medical Devices Co., Ltd. (Shanghai Zhikang), which is wholly owned by Changzhou Kanghui.

Receive News & Ratings for ConforMIS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ConforMIS and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply