Critical Review: MSP Recovery (NASDAQ:MSPR) and Enovis (NYSE:ENOV)

MSP Recovery (NASDAQ:MSPR) and Enovis (NYSE:ENOV) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

3.8% of MSP Recovery shares are owned by institutional investors. Comparatively, 98.4% of Enovis shares are owned by institutional investors. 50.5% of MSP Recovery shares are owned by insiders. Comparatively, 2.7% of Enovis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares MSP Recovery and Enovis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-4,375.62%	-326.80%	-61.32%
Enovis	-37.80%	6.78%	3.73%

Analyst Ratings

This is a summary of current recommendations and price targets for MSP Recovery and Enovis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	1	0	0	0	1.00
Enovis	1	0	6	0	2.71

Enovis has a consensus target price of $51.17, suggesting a potential upside of 80.74%. Given Enovis’ stronger consensus rating and higher probable upside, analysts plainly believe Enovis is more favorable than MSP Recovery.

Volatility and Risk

MSP Recovery has a beta of -2.58, suggesting that its share price is 358% less volatile than the S&P 500. Comparatively, Enovis has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Valuation & Earnings

This table compares MSP Recovery and Enovis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$18.25 million	0.04	-$360.50 million	($522.40)	0.00
Enovis	$2.23 billion	0.72	-$825.49 million	($23.66)	-1.20

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

Summary

Enovis beats MSP Recovery on 11 of the 14 factors compared between the two stocks.

About MSP Recovery

MSP Recovery, Inc. engages in the development of healthcare recoveries and data analytics software. It also focuses on the identification and recoveries of improper payments made by Medicare, Medicaid, and commercial insurance spaces using data and analytics. The company was founded by John H. Ruiz, Frank C. Quesada, and Diana Diaz on July 8, 2014 and is headquartered in Miami, FL.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.