Financial Analysis: Vermillion (VRML) versus Akers Biosciences (AKER)

Vermillion (NASDAQ:VRML) and Akers Biosciences (NASDAQ:AKER) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares Vermillion and Akers Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vermillion -372.45% -150.85% -97.95%
Akers Biosciences -651.26% -121.41% -100.32%

Risk and Volatility

Vermillion has a beta of 3.7, suggesting that its share price is 270% more volatile than the S&P 500. Comparatively, Akers Biosciences has a beta of -0.93, suggesting that its share price is 193% less volatile than the S&P 500.

Institutional and Insider Ownership

20.9% of Vermillion shares are held by institutional investors. Comparatively, 8.2% of Akers Biosciences shares are held by institutional investors. 4.3% of Vermillion shares are held by company insiders. Comparatively, 8.9% of Akers Biosciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Vermillion and Akers Biosciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vermillion 0 1 0 0 2.00
Akers Biosciences 0 0 0 0 N/A

Vermillion currently has a consensus target price of $2.25, indicating a potential upside of 69.17%. Given Vermillion’s higher probable upside, equities analysts clearly believe Vermillion is more favorable than Akers Biosciences.

Valuation and Earnings

This table compares Vermillion and Akers Biosciences’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vermillion $3.05 million 32.94 -$11.37 million N/A N/A
Akers Biosciences $1.67 million 6.45 -$10.85 million N/A N/A

Akers Biosciences has lower revenue, but higher earnings than Vermillion.

Summary

Vermillion beats Akers Biosciences on 7 of the 10 factors compared between the two stocks.

Vermillion Company Profile

Vermillion, Inc., together with its subsidiaries, discovers, develops, and commercializes diagnostic and bio-analytical solutions that help physicians to diagnose, treat, and enhance gynecologic health outcomes for women primarily in the United States. The company's diagnostic tests include OVA1, a blood test for the pre-surgical identification of women who are at high risk of having a malignant ovarian tumor; and Overa, a multivariate index assay second generation test to determine the malignancy of ovarian cancer in women. It also offers in-vitro diagnostic (IVD) trial services to third-party customers; and laboratory services to meet the needs of IVD manufacturers to commercialize high-complexity assays. The company serves clinical reference laboratories, hospital laboratories, and physician offices. Vermillion, Inc. was founded in 1993 and is headquartered in Austin, Texas.

Akers Biosciences Company Profile

Akers Biosciences, Inc., together with its subsidiaries, develops, manufactures, and supplies rapid screening and testing products designed to deliver healthcare information to healthcare providers and consumers in the United States, the People's Republic of China, and internationally. The company's marketed products include BreathScan, a disposable breath alcohol detector; BreathScan PRO, a quantitative breath alcohol detection system; METRON, a disposable breath ketone device to monitor ketosis; and BreathScan Lync, a non-invasive, quantitative measurement of biological markers for health and wellness. Its marketed products also include PIFA Heparin/PF4 and PIFA PLUSS PF4 rapid tests for Heparin/PF4 antibodies to detect an allergy to the used blood thinner, Heparin; seraSTAT, a rapid blood cell separator; Tri-Cholesterol ‘Check', a rapid test for total and high density lipoprotein cholesterol and estimates low density lipo protein; and BreathScan OxiCHek, a breath test for oxidative stress using the Lync reader and digital app. The company's pipeline products comprise Breath Diabetic Ketoacidosis, a disposable breath ketone device for diabetic monitoring; Breath PulmoHealth ‘Check', a suite of breath tests for biomarkers indicating asthma, chronic obstructive pulmonary disease, and lung cancer; PIFA PLUSS Chlamydia, a rapid test for sexually transmitted diseases; and BreathScan KetoChek, a breath test for ketosis using the Lync reader and digital app. Akers Biosciences, Inc. was founded in 1989 and is headquartered in Thorofare, New Jersey.

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