Contrasting electroCore (NASDAQ:ECOR) and Lotus Pharmaceuticals (OTCMKTS:LTUS)

Lotus Pharmaceuticals (OTCMKTS:LTUS) and electroCore (NASDAQ:ECOR) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lotus Pharmaceuticals and electroCore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Pharmaceuticals	0	0	0	0	0.00
electroCore	1	0	2	0	2.33

electroCore has a consensus target price of $25.50, suggesting a potential upside of 427.95%. Given electroCore’s stronger consensus rating and higher probable upside, analysts clearly believe electroCore is more favorable than Lotus Pharmaceuticals.

Risk and Volatility

Lotus Pharmaceuticals has a beta of -1.78, suggesting that its stock price is 278% less volatile than the S&P 500. Comparatively, electroCore has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lotus Pharmaceuticals and electroCore”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Pharmaceuticals	N/A	N/A	$110,000.00	N/A	N/A
electroCore	$25.18 million	1.53	-$11.89 million	($1.62)	-2.98

Lotus Pharmaceuticals has higher earnings, but lower revenue than electroCore.

Profitability

This table compares Lotus Pharmaceuticals and electroCore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Pharmaceuticals	N/A	N/A	N/A
electroCore	-47.84%	-221.93%	-69.17%

Institutional and Insider Ownership

26.7% of electroCore shares are held by institutional investors. 13.8% of electroCore shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

electroCore beats Lotus Pharmaceuticals on 7 of the 11 factors compared between the two stocks.

About Lotus Pharmaceuticals

Lotus Pharmaceuticals, Inc. does not have significant operations. Previously, it was engaged in the development, manufacture, and sale of pharmaceuticals in the People's Republic of China. The company is based in Nashville, Tennessee.

About electroCore

electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The company is developing gammaCore, a prescription only handheld device intended for regular or intermittent use for the acute treatment of pain associated with migraine and episodic cluster headache, as well as for the treatment of hemicrania continua and paroxysmal hemicrania. It also develops Truvaga for the support of general health and wellbeing; and TAC-STIM for human performance. In addition, the company offers gammacore Sapphire, a portable, reusable, rechargeable, and reloadable prescription medical device for various primary headache conditions. electroCore, Inc. was incorporated in 2005 and is headquartered in Rockaway, New Jersey.