Comparing Nihon Kohden (OTCMKTS:NHNKY) & CONMED (NYSE:CNMD)

Nihon Kohden (OTCMKTS:NHNKY) and CONMED (NYSE:CNMD) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Earnings and Valuation

This table compares Nihon Kohden and CONMED”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nihon Kohden	$1.56 billion	1.06	$95.79 million	$0.55	17.90
CONMED	$1.37 billion	1.07	$47.06 million	$1.85	26.55

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

Profitability

This table compares Nihon Kohden and CONMED’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nihon Kohden	5.90%	9.17%	6.47%
CONMED	4.12%	14.31%	6.33%

Insider & Institutional Ownership

0.1% of Nihon Kohden shares are held by institutional investors. 0.3% of CONMED shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Nihon Kohden has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, CONMED has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nihon Kohden and CONMED, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nihon Kohden	0	2	0	0	2.00
CONMED	1	7	0	0	1.88

CONMED has a consensus price target of $41.40, suggesting a potential downside of 15.73%. Given CONMED’s higher possible upside, analysts clearly believe CONMED is more favorable than Nihon Kohden.

Summary

CONMED beats Nihon Kohden on 7 of the 13 factors compared between the two stocks.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

About CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.