Analyzing Cytosorbents (NASDAQ:CTSO) and Omnicell (NASDAQ:OMCL)

Omnicell (NASDAQ:OMCL) and Cytosorbents (NASDAQ:CTSO) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings for Omnicell and Cytosorbents, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	0	2	7	0	2.78
Cytosorbents	1	1	1	0	2.00

Omnicell currently has a consensus target price of $57.86, suggesting a potential upside of 64.32%. Cytosorbents has a consensus target price of $107.50, suggesting a potential upside of 2,677.78%. Given Cytosorbents’ higher probable upside, analysts clearly believe Cytosorbents is more favorable than Omnicell.

Valuation and Earnings

This table compares Omnicell and Cytosorbents”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicell	$1.18 billion	1.35	$2.05 million	$0.84	41.92
Cytosorbents	$37.06 million	0.33	-$8.20 million	($5.80)	-0.67

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

Insider and Institutional Ownership

97.7% of Omnicell shares are owned by institutional investors. Comparatively, 32.9% of Cytosorbents shares are owned by institutional investors. 2.9% of Omnicell shares are owned by company insiders. Comparatively, 7.8% of Cytosorbents shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Omnicell has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Cytosorbents has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares Omnicell and Cytosorbents’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnicell	3.13%	5.66%	3.57%
Cytosorbents	-48.94%	-431.65%	-41.94%

Summary

Omnicell beats Cytosorbents on 11 of the 14 factors compared between the two stocks.

About Omnicell

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.

About Cytosorbents

Cytosorbents Corporation engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology in the United States, Germany, and internationally. Its flagship product is CytoSorb, an extracorporeal cytokine adsorber for adjunctive therapy in the treatment of sepsis, adjunctive therapy in other critical care applications, prevention, and treatment of perioperative complications, and maintaining or enhancing the quality of solid organs harvested from donors for organ transplant; and offers VetResQ, a device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. The company also develops CytoSorb-XL, a device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients, and removal of anti-A and anti-B blood group antibodies from whole blood and plasma; K+ontrol for treatment of severe hyperkalemia in patients with life-threatening conditions; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. In addition, it develops BetaSorb, a device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; DrugSorb, a device to remove drugs and chemicals from the blood; and DrugSorb-ATR, an antithrombotic removal system. The company was formerly known as MedaSorb Technologies Corporation and changed its name to Cytosorbents Corporation in May 2010. Cytosorbents Corporation was founded in 1997 and is headquartered in Princeton, New Jersey.