Analyzing Nihon Kohden (OTCMKTS:NHNKY) and Venus Concept (NASDAQ:VERO)

Nihon Kohden (OTCMKTS:NHNKY) and Venus Concept (NASDAQ:VERO) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

Nihon Kohden has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Venus Concept has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Nihon Kohden shares are held by institutional investors. Comparatively, 87.4% of Venus Concept shares are held by institutional investors. 28.0% of Venus Concept shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Nihon Kohden and Venus Concept, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nihon Kohden	0	2	0	0	2.00
Venus Concept	1	0	0	0	1.00

Profitability

This table compares Nihon Kohden and Venus Concept’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nihon Kohden	5.90%	9.17%	6.47%
Venus Concept	-92.76%	-1,904.25%	-85.22%

Earnings & Valuation

This table compares Nihon Kohden and Venus Concept”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nihon Kohden	$1.56 billion	1.09	$95.79 million	$0.55	18.47
Venus Concept	$58.88 million	0.01	-$47.00 million	($48.84)	-0.01

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

Summary

Nihon Kohden beats Venus Concept on 10 of the 12 factors compared between the two stocks.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

About Venus Concept

Venus Concept Inc., a medical technology company, develops, commercializes, and delivers minimally invasive and non-invasive medical aesthetic and hair restoration technologies, and related services in the United States and internationally. Its product portfolio includes Venus Legacy, a noninvasive device used in dermatological and general surgical procedures for females; Venus Versa, a multi-application device used in aesthetic and cosmetic procedures; Venus Versa Pro; and Venus Viva and Venus Viva MD, an advanced, portable, and fractional RF system for dermatological procedures requiring ablation and resurfacing of the skin. The company also offers Venus Fiore, a device that delivers non-thermal RF with massage and magnetic field pulses to treat various medical conditions; Venus Bliss and Venus Bliss Max for non-invasive lipolysis of the abdomen, back, thights, and flanks in individuals with a body mass index of 30 or less; Venus Glow, a dermabrasion device used to improve skin appearance; and NeoGraft, an advanced hair restoration technology with an automated FUE and implantation system. In addition, it provides Venus Velocity and Venus Epileve for hair removal, permanent hair reduction, and treatment of pseudofolliculitis barbae; ARTAS iX, a robotic system to assist physicians in identifying and extracting hair follicles units from the scalp during hair transplantation, creating recipient sites, and implanting the harvested hair follicles; and AI.ME an interactive, image-guided, and computer assisted system for fractional skin resurfacing. The company is headquartered in Toronto, Canada.