Electromed (NYSE:ELMD) vs. Cytosorbents (NASDAQ:CTSO) Head-To-Head Survey

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

Risk & Volatility

Cytosorbents has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Electromed has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Institutional & Insider Ownership

32.9% of Cytosorbents shares are held by institutional investors. Comparatively, 40.8% of Electromed shares are held by institutional investors. 7.8% of Cytosorbents shares are held by company insiders. Comparatively, 11.0% of Electromed 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 current ratings and recommmendations for Cytosorbents and Electromed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cytosorbents	1	1	1	0	2.00
Electromed	0	1	3	0	2.75

Cytosorbents presently has a consensus target price of $107.50, indicating a potential upside of 3,006.94%. Electromed has a consensus target price of $43.75, indicating a potential upside of 58.06%. Given Cytosorbents’ higher probable upside, equities research analysts clearly believe Cytosorbents is more favorable than Electromed.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cytosorbents	-48.94%	-431.65%	-41.94%
Electromed	11.34%	15.71%	13.37%

Valuation and Earnings

This table compares Cytosorbents and Electromed”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cytosorbents	$37.06 million	0.29	-$8.20 million	($5.80)	-0.60
Electromed	$73.78 million	3.11	$5.15 million	$1.31	21.13

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

Summary

Electromed beats Cytosorbents on 12 of the 14 factors compared between the two stocks.

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.

About Electromed

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy and amyotrophic lateral sclerosis; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products to hospitals, home health care centers, pulmonary rehabilitation centers, cystic fibrosis centers, neuromuscular clinics, and other clinics through distributors. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.