Financial Comparison: Natus Medical (BABY) & Rockwell Medical (RMTI)

Natus Medical (NASDAQ: BABY) and Rockwell Medical (NASDAQ:RMTI) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Natus Medical and Rockwell Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natus Medical 0 1 2 0 2.67
Rockwell Medical 0 0 0 1 4.00

Natus Medical presently has a consensus price target of $44.00, indicating a potential upside of 23.42%. Rockwell Medical has a consensus price target of $11.00, indicating a potential upside of 105.99%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Rockwell Medical is more favorable than Natus Medical.

Insider & Institutional Ownership

89.5% of Natus Medical shares are owned by institutional investors. Comparatively, 21.2% of Rockwell Medical shares are owned by institutional investors. 5.5% of Natus Medical shares are owned by insiders. Comparatively, 18.2% of Rockwell Medical 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.

Earnings & Valuation

This table compares Natus Medical and Rockwell Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natus Medical $500.97 million 2.37 -$20.29 million $1.45 24.59
Rockwell Medical $57.30 million 4.82 -$25.92 million ($0.51) -10.47

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

Profitability

This table compares Natus Medical and Rockwell Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natus Medical -4.71% 10.96% 6.71%
Rockwell Medical -48.06% -76.49% -45.06%

Volatility and Risk

Natus Medical has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Summary

Natus Medical beats Rockwell Medical on 9 of the 15 factors compared between the two stocks.

About Natus Medical

Natus Medical Incorporated provides newborn care, neurology, and hearing and balance assessment healthcare products and services worldwide. It offers products and services used for the screening, diagnosis, detection, treatment, monitoring, and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases, and balance and mobility disorders. The company provides computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology; and software systems for managing and tracking disorders and diseases for public health laboratories. It offers diagnostic electroencephalography (EEG), ambulatory EEG, and long term monitoring, intensive care unit monitoring, electromyography, sleep analysis or polysomnography, intra-operative monitoring, and diagnostic and monitoring transcranial doppler ultrasound technology systems. The company also provides hearing screening products to screen the hearing; diagnostic hearing assessment products to screen for or diagnose hearing loss, or to identify abnormalities affecting the peripheral and central auditory nervous systems; balance and mobility systems to diagnose and assist in treating balance disorders; and thermoregulation products to control the incubators and warmers. In addition, it offers jaundice management products to treat jaundice; brain injury products to diagnose the severity of brain injury; NICVIEW, a live streaming video for families with babies in the neonatal intensive care unit (NICU); and essential products used in the everyday operation of NICU. Further, the company provides computer-based audiological, otoneurologic, and vestibular instrumentation and sound rooms to hearing and balance care professionals. It serves hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Natus Medical Incorporated was founded in 1987 and is headquartered in Pleasanton, California.

About Rockwell Medical

Rockwell Medical, Inc. operates as an integrated biopharmaceutical company targeting end-stage renal and chronic kidney diseases in the United States and internationally. The company's lead drug includes Triferic, an iron maintenance therapy that replaces the iron lost by patients during hemodialysis treatment. It also provides Calcitriol, a generic active vitamin D injection, which is indicated for the treatment of secondary hyperparathyroidism in dialysis patients. In addition, the company manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, Renalpure powder bicarbonate concentrate, and SteriLyte liquid bicarbonate concentrate; and ancillary products, including blood tubings, fistula needles, specialized custom kits, dressings, cleaning agents, filtration salts, and other supplies used by hemodialysis providers. Its concentrated dialysate products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell Medical, Inc. sells its products directly, as well as through independent sales agents and distributors. The company's target customers include senior and operating management of dialysis companies, dialysis service providers, nephrologists, clinic administrators, nurses, medical directors, and technical and purchasing personnel. Rockwell Medical, Inc. was founded in 1995 and is based in Wixom, Michigan.

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