EDAP TMS (NASDAQ: EDAP) and PhotoMedex (NASDAQ:PHMD) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitabiliy, earnings and risk.

Institutional and Insider Ownership

8.2% of EDAP TMS shares are owned by institutional investors. Comparatively, 5.2% of PhotoMedex shares are owned by institutional investors. 22.4% of PhotoMedex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EDAP TMS and PhotoMedex, as reported by MarketBeat.com.

EDAP TMS currently has a consensus target price of $7.00, indicating a potential upside of 149.11%. Given EDAP TMSs higher probable upside, research analysts clearly believe EDAP TMS is more favorable than PhotoMedex.

Earnings & Valuation

This table compares EDAP TMS and PhotoMedexs top-line revenue, earnings per share and valuation.

EDAP TMS has higher revenue and earnings than PhotoMedex.

Profitability

This table compares EDAP TMS and PhotoMedexs net margins, return on equity and return on assets.

Volatility & Risk

EDAP TMS has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, PhotoMedex has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

EDAP TMS beats PhotoMedex on 10 of the 11 factors compared between the two stocks.

About EDAP TMS

EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.

About PhotoMedex

PhotoMedex, Inc. is a global health products and services company providing integrated disease management and solutions to dermatologists, professional aestheticians and consumers. The Company provides products and services that address skin diseases and conditions, including acne and photo damage. The Company operates through three business segments: Consumer segment, Physician Recurring segment and Professional segment. The Company provides skin health solutions to spa markets, as well as traditional retail, online and infomercial outlets for home-use products. The Companys Consumer segment is engaged in the designing, development, manufacturing and selling of long-term hair reduction and acne consumer products. Its Physician Recurring segment is engaged in the sales of skincare products. Its Professional segment is engaged in the sale of equipment, such as medical and esthetic light and heat based products. Its LHE brands includes Mistral, Kona, FSD, SpaTouch Elite and accessories.

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Head-To-Head Analysis: PhotoMedex (PHMD) vs. EDAP TMS (EDAP) - Week Herald