Financial Analysis: Arrayit (OTCMKTS:ARYC) vs. Edap Tms (NASDAQ:EDAP)

Edap Tms (NASDAQ:EDAP) and Arrayit (OTCMKTS:ARYC) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

62.7% of Edap Tms shares are owned by institutional investors. 0.2% of Edap Tms shares are owned by insiders. Comparatively, 58.0% of Arrayit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Edap Tms and Arrayit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edap Tms	1	2	1	0	2.00
Arrayit	0	0	0	0	0.00

Edap Tms presently has a consensus price target of $8.50, indicating a potential upside of 297.20%. Given Edap Tms’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Edap Tms is more favorable than Arrayit.

Profitability

This table compares Edap Tms and Arrayit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edap Tms	-33.49%	-56.85%	-26.83%
Arrayit	N/A	N/A	N/A

Valuation and Earnings

This table compares Edap Tms and Arrayit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edap Tms	$65.82 million	1.22	-$20.58 million	($0.57)	-3.75
Arrayit	N/A	N/A	N/A	N/A	N/A

Arrayit has lower revenue, but higher earnings than Edap Tms.

Summary

Edap Tms beats Arrayit on 5 of the 9 factors compared between the two stocks.

About Edap Tms

EDAP TMS SA is a holding company, which, through its subsidiary, engages in the development, production, and marketing of minimally invasive medical devices for urological diseases. It operates through the High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) segments. The HIFU segment develops, manufactures, and markets devices for the minimally invasive ablation of certain types of localized tumors using HIFU technology. The UDS segment focuses on the development, marketing, manufacturing, and servicing of medical devices for the minimally invasive diagnosis or treatment of urological disorders, mainly urinary stones, and other clinical indications. The company was founded on December 3, 1979 and is headquartered in Vaulx-en-Velin, France.

About Arrayit

Arrayit Corporation, a life sciences technology company, develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation, biological function, and diagnostics worldwide. The company is involved in the development and support of microarray tools and components; custom printing and analysis of microarrays for research; and the identification and development of diagnostic microarrays and tools for early detection of treatable disease states. It offers microarray printing technology, which allows the manufacture of DNA, protein, antibody, lipid, carbohydrate, and other types of microarrays for research and diagnostic applications, including gene expression, genotyping, protein profiling, and others. The company also provides automated microarray manufacturing instruments, including NanoPrint, SpotBot Titan, SpotBot Extreme, SpotBo Protein, and Personal microarrayers, as well as SpotLight CCD fluorescence scanners, SpotWare colorimetric scanners, InnoScan laser scanners, TrayMix hybridization stations, ArrayMix hybridization stations, centrifuges, air jets, vacuum products, and laboratory tools and bioinformatics computers. In addition, it manufactures consumables, such as glass substrates and slides, reagents, solutions, kits, and clean room supplies; and provides variation identification platform technology that allows diagnostic tests to be performed by depositing approximately 100,000 patient samples onto a single microarray. Further, the company is involved in the import, export, manufacture, and distribution of wholesale industrial chemicals. Arrayit Corporation offers its tools and services to genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, government agencies, and biotechnology companies. The company is headquartered in Sunnyvale, California.