Adagio Medical (NASDAQ:ADGM) & OraSure Technologies (NASDAQ:OSUR) Financial Review

OraSure Technologies (NASDAQ:OSUR) and Adagio Medical (NASDAQ:ADGM) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Earnings & Valuation

This table compares OraSure Technologies and Adagio Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OraSure Technologies	$115.02 million	2.33	-$68.73 million	($0.69)	-5.62
Adagio Medical	$600,000.00	26.62	-$25.08 million	($1.53)	-0.47

Adagio Medical has lower revenue, but higher earnings than OraSure Technologies. OraSure Technologies is trading at a lower price-to-earnings ratio than Adagio Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OraSure Technologies and Adagio Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OraSure Technologies	1	1	0	0	1.50
Adagio Medical	1	1	2	0	2.25

OraSure Technologies currently has a consensus price target of $3.00, suggesting a potential downside of 22.68%. Adagio Medical has a consensus price target of $3.50, suggesting a potential upside of 386.72%. Given Adagio Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Adagio Medical is more favorable than OraSure Technologies.

Institutional and Insider Ownership

93.5% of OraSure Technologies shares are owned by institutional investors. Comparatively, 48.1% of Adagio Medical shares are owned by institutional investors. 4.7% of OraSure Technologies shares are owned by company insiders. Comparatively, 7.8% of Adagio Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares OraSure Technologies and Adagio Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OraSure Technologies	-43.70%	-19.09%	-16.26%
Adagio Medical	N/A	-382.50%	-64.98%

Risk & Volatility

OraSure Technologies has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Adagio Medical has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Summary

Adagio Medical beats OraSure Technologies on 8 of the 14 factors compared between the two stocks.

About OraSure Technologies

OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.

About Adagio Medical

Adagio Medical Holdings, Inc., a developmental stage medical device company, focuses on the development and commercialization of ablation technologies for the treatment of cardiac arrhythmias. It offers treatment for cardiac arrhythmias, including atrial fibrillation, atrial flutter, and ventricular tachycardia. The company’s product portfolio includes iCLAS atrial ultra-low temperature cryoablation (ULTC) catheter and accessories; vCLAS ventricular ULTC catheter; and Cryopulse atrial pulsed-field cryoablation catheter and accessories. The company is based in Laguna Hills, California.