Critical Analysis: ELEKTA AB/ADR (OTCMKTS:EKTAY) & Psychemedics (OTCMKTS:PMD)

ELEKTA AB/ADR (OTCMKTS:EKTAY) and Psychemedics (NASDAQ:PMD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares ELEKTA AB/ADR and Psychemedics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ELEKTA AB/ADR 8.84% 16.49% 5.21%
Psychemedics 8.86% 19.14% 13.84%

Analyst Recommendations

This is a summary of recent recommendations for ELEKTA AB/ADR and Psychemedics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ELEKTA AB/ADR 0 1 1 0 2.50
Psychemedics 0 0 0 0 N/A

Earnings and Valuation

This table compares ELEKTA AB/ADR and Psychemedics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ELEKTA AB/ADR $1.50 billion 3.53 $132.74 million $0.35 41.14
Psychemedics $42.67 million 1.04 $4.58 million N/A N/A

ELEKTA AB/ADR has higher revenue and earnings than Psychemedics.

Risk & Volatility

ELEKTA AB/ADR has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Psychemedics has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Dividends

ELEKTA AB/ADR pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Psychemedics pays an annual dividend of $0.72 per share and has a dividend yield of 9.0%. ELEKTA AB/ADR pays out 28.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of ELEKTA AB/ADR shares are owned by institutional investors. Comparatively, 57.6% of Psychemedics shares are owned by institutional investors. 11.2% of Psychemedics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Psychemedics beats ELEKTA AB/ADR on 8 of the 13 factors compared between the two stocks.

About ELEKTA AB/ADR

Elekta AB (publ) provides equipment and software for cancer and brain disorders worldwide. The company offers radiotherapy systems under the Versa HD, Precise Treatment System, and Elekta Compact names; Elekta Infinity, an image-guided radiation therapy (IGRT) system; and Elekta Synergy, a digital accelerator for advanced IGRT. It also provides personalized imaging tools; automation and integration systems; beam shaping solutions; patient positioning and immobilization solutions; and radiotherapy treatment planning systems. In addition, the company offers radiosurgery systems under the Leksell Gamma Knife Icon, Leksell Gamma Knife Perfexion, and Elekta Axesse names; Leksell GammaPlan, a treatment planning software; and Elekta Unity, a magnetic resonance radiation therapy solution. Further, it provides care management software, such as MOSAIQ Radiation Oncology and MOSAIQ Medical Oncology; MOSAIQ IQ Scripts, a workflow automation and customization tool; Patient Engagement, a patient communication tool; MOSAIQ Evaluate, a plan management and dose review solution; MOSAIQ Locate, a stereotactic localization solution; and METRIQ, a cancer registry data management solution. Additionally, the company offers Flexitron, a remote after loading platform; microSelectron, a digital pulsed dose rate platform; Esteya, an electronic brachytherapy for treating skin cancer; Oncentra Brachy, a treatment planning software; real-time prostate solutions; and gynecological brachytherapy, bronchus and esophagus, breast, prostate, rectum and bladder, and skin applicators, as well as brachytherapy needles and flexible implant tubes. It also provides Leksell Vantage Stereotactic System for neuroimaging and treatment; Elekta Neuromag TRIUX, a magnetoencephalography system; Leksell Stereotactic System for minimally invasive stereotactic neurosurgery; and proton therapy components. The company was founded in 1972 and is headquartered in Stockholm, Sweden.

About Psychemedics

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States and internationally. The company's tests provide quantitative information that can indicate the approximate amount of drug ingested, as well as historical data, which can show a pattern of individual drug use over a longer period of time. It provides screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, PCP, amphetamines, synthetic cannabinoids, and benzodiazepines, as well as opiates, including heroin, hydrocodone, hydromorphone, oxycodone, oxymorphone, and codeine. The company offers its services to employers for applicant and employee testing; treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children's drug use; and Fortune 500 companies and small to mid-size corporations, as well as school and government entities. Psychemedics Corporation was founded in 1985 and is headquartered in Acton, Massachusetts.

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