Contrasting SiBone (NASDAQ:SIBN) and Spectral Diagnostics (OTCMKTS:EDTXF)

SiBone (NASDAQ:SIBN) and Spectral Diagnostics (OTCMKTS:EDTXF) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Risk & Volatility

SiBone has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Spectral Diagnostics has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.

Profitability

This table compares SiBone and Spectral Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiBone	-11.24%	-12.94%	-9.48%
Spectral Diagnostics	-832.89%	N/A	-361.73%

Institutional and Insider Ownership

98.1% of SiBone shares are held by institutional investors. 3.9% of SiBone shares are held by insiders. Comparatively, 1.5% of Spectral Diagnostics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SiBone and Spectral Diagnostics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiBone	1	0	3	0	2.50
Spectral Diagnostics	0	0	0	0	0.00

SiBone presently has a consensus price target of $23.00, suggesting a potential upside of 26.23%. Given SiBone’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SiBone is more favorable than Spectral Diagnostics.

Earnings & Valuation

This table compares SiBone and Spectral Diagnostics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiBone	$167.18 million	4.70	-$30.91 million	($0.56)	-32.54
Spectral Diagnostics	$1.67 million	187.00	-$11.24 million	($0.11)	-9.82

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

Summary

SiBone beats Spectral Diagnostics on 9 of the 14 factors compared between the two stocks.

About SiBone

SI-BONE, Inc., a medical device company, that operate to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers proprietary minimally invasive surgical implant system to address sacroiliac joint dysfunction and fusion, adult deformity and degeneration, and pelvic trauma; and implantable bone products. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; iFuse-TORQ, a set of 3D-printed threaded implants designed to treat pelvic trauma; and iFuse Bedrock Granite implant provides sacroiliac fusion and sacropelvic fixation as a foundational element for segmental spinal fusion. It markets its products primarily with a direct sales force, as well as through agents and resellers. SI-BONE, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.

About Spectral Diagnostics

Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.