Critical Comparison: InfuSystem (NYSE:INFU) versus Medifocus (OTCMKTS:MDFZF)

Medifocus (OTCMKTS:MDFZF) and InfuSystem (NYSE:INFU) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings and Valuation

This table compares Medifocus and InfuSystem”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medifocus	N/A	N/A	N/A	N/A	N/A
InfuSystem	$141.05 million	1.22	$870,000.00	$0.26	32.62

InfuSystem has higher revenue and earnings than Medifocus.

Institutional and Insider Ownership

71.1% of InfuSystem shares are owned by institutional investors. 11.4% of InfuSystem shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Medifocus and InfuSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medifocus	N/A	N/A	N/A
InfuSystem	1.12%	2.78%	1.41%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Medifocus and InfuSystem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medifocus	0	0	0	0	0.00
InfuSystem	0	1	2	2	3.20

InfuSystem has a consensus price target of $14.50, indicating a potential upside of 70.99%. Given InfuSystem’s stronger consensus rating and higher probable upside, analysts plainly believe InfuSystem is more favorable than Medifocus.

Summary

InfuSystem beats Medifocus on 10 of the 10 factors compared between the two stocks.

About Medifocus

Medifocus, Inc., a medical technology company, develops and commercializes minimally invasive focused heat systems for the treatment of cancerous and benign tumors, and enlarged prostate in Canada and the United States. The company owns technology platforms, including Endo-thermotherapy platform, a catheter-based focused heat technology platform that utilizes natural body openings to deliver microwave thermotherapy to the diseased sites; and Adaptive Phased Array (APA) Microwave Focusing platform, which directs focused microwave energy at tumor center to induce shrinkage or eradication of tumors without undue harm to surrounding tissue. It also offers Prolieve Thermodilatation system, a medical device based on endo-thermotherapy for the treatment of benign prostatic hyperplasia. In addition, the company is developing APA 1000, a minimally invasive breast cancer treatment system, which is in pivotal Phase-III clinical trials. The company has a license agreement with Duke University for the development of heat-activated and tumor-targeted immunotherapy and gene therapy technology for the treatment of cancers and other diseases. Medifocus, Inc. is based in Toronto, Canada.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.