Financial Comparison: Atrion (ATRI) & Alliqua Biomedical (ALQA)

Atrion (NASDAQ: ATRI) and Alliqua Biomedical (NASDAQ:ALQA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Atrion and Alliqua Biomedical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atrion 22.98% 18.34% 16.33%
Alliqua Biomedical -155.55% -110.42% -65.28%

Institutional & Insider Ownership

59.0% of Atrion shares are held by institutional investors. 23.1% of Atrion shares are held by insiders. Comparatively, 15.8% of Alliqua Biomedical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Atrion and Alliqua Biomedical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atrion 0 0 0 0 N/A
Alliqua Biomedical 0 1 2 0 2.67

Alliqua Biomedical has a consensus target price of $10.10, suggesting a potential upside of 410.10%. Given Alliqua Biomedical’s higher possible upside, analysts clearly believe Alliqua Biomedical is more favorable than Atrion.

Dividends

Atrion pays an annual dividend of $4.80 per share and has a dividend yield of 0.8%. Alliqua Biomedical does not pay a dividend. Atrion pays out 26.6% of its earnings in the form of a dividend. Alliqua Biomedical has raised its dividend for 15 consecutive years.

Earnings & Valuation

This table compares Atrion and Alliqua Biomedical’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atrion $143.49 million 7.88 $27.58 million $18.05 33.86
Alliqua Biomedical $18.24 million 0.54 -$28.24 million ($9.86) -0.20

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

Volatility & Risk

Atrion has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Alliqua Biomedical has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Atrion beats Alliqua Biomedical on 11 of the 15 factors compared between the two stocks.

About Atrion

Atrion Corporation (Atrion) is engaged in developing and manufacturing products, primarily for medical applications. The Company’s medical products range from fluid delivery devices to ophthalmic and cardiovascular products. Its fluid delivery products include valves that promote infection control and needle safety. It has developed a range of valves designed to fill, hold and release controlled amounts of fluids or gasses on demand for use in various intubation, intravenous, catheter and other applications in areas, such as anesthesia and oncology. Its cardiovascular product, MPS2 Myocardial Protection System (MPS2), is the system used in open-heart surgery that delivers fluids and medications, mixes critical drugs and controls temperature, pressure and other variables. The Company manufactures specialized medical devices that disinfect contact lenses. Its other medical and non-medical product lines consist of instrumentation and associated disposables.

About Alliqua Biomedical

Alliqua BioMedical, Inc. is a provider of advanced wound care solutions. The Company’s businesses include advanced wound care and contract manufacturing. The Company operates through its subsidiaries, such as AquaMed Technologies, Inc. and Choice Therapeutics, Inc. The Company is engaged in developing a suite of advanced wound care solutions that will enable surgeons, clinicians and wound care practitioners to address the challenges in chronic and acute wounds. The Company utilizes hydrogel technology through which hydrogels are manufactured by introducing a hydrophilic polymer into water to create a feed mix. The Company’s commercial wound care portfolio consists of over four product categories, such as Human Biologics; Antimicrobial Protection; Exudate Management and Contract Manufacturing. Human Biologics include BIOVANCE and Extracellular Matrix (ECM). Under Antimicrobial Protection, the Company offers SilverSeal.

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