Contrasting AdaptHealth (NASDAQ:AHCO) and PURE Bioscience (OTCMKTS:PURE)

AdaptHealth (NASDAQ:AHCO) and PURE Bioscience (OTCMKTS:PURE) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and target prices for AdaptHealth and PURE Bioscience, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdaptHealth	2	0	5	0	2.43
PURE Bioscience	0	0	0	0	0.00

AdaptHealth presently has a consensus target price of $13.40, suggesting a potential upside of 48.56%. Given AdaptHealth’s stronger consensus rating and higher probable upside, equities research analysts clearly believe AdaptHealth is more favorable than PURE Bioscience.

Earnings and Valuation

This table compares AdaptHealth and PURE Bioscience”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdaptHealth	$3.26 billion	0.37	$90.42 million	$0.54	16.70
PURE Bioscience	$1.96 million	5.21	-$3.35 million	($0.04)	-2.28

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

Profitability

This table compares AdaptHealth and PURE Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdaptHealth	2.49%	5.01%	1.77%
PURE Bioscience	-147.72%	N/A	-334.78%

Insider & Institutional Ownership

82.7% of AdaptHealth shares are held by institutional investors. 1.6% of AdaptHealth shares are held by insiders. Comparatively, 43.5% of PURE Bioscience shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

AdaptHealth has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, PURE Bioscience has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Summary

AdaptHealth beats PURE Bioscience on 12 of the 14 factors compared between the two stocks.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

About PURE Bioscience

PURE Bioscience, Inc. develops and commercializes antimicrobial products that provide solutions to the health and environmental challenges of pathogen and hygienic control in the United States and internationally. The company manufactures and distributes silver dihydrogen citrate (SDC), a non-toxic antimicrobial agent, which offers residual protection, as well as formulates with other compounds. It offers SDC-based disinfecting and sanitizing products, including PURE Hard Surface, a food contact surface sanitizer and disinfectant; PURE Control, a food contact processing aid for fresh produce and raw poultry; PURE Multi-Purpose and Floor Cleaner Concentrate to clean various resilient surfaces, including floors, glass, and food contact surfaces; and PURE Multi-Purpose Hi-Foam Cleaner Concentrate to clean stainless steel equipment, resilient floors, walls, and painted surfaces. The company also provides Axen30, a hard surface disinfectant; Axenohl, an antimicrobial formulation for use as a raw material ingredient in the manufacturing of consumer and commercial disinfecting and sanitizing products; and SILVÉRION, an antimicrobial formulation that is used against bacteria, viruses, yeasts, and molds. PURE Bioscience, Inc. was incorporated in 1992 and is headquartered in Rancho Cucamonga, California.