BIOLASE (NASDAQ:BIOL) and Clovis Oncology (NASDAQ:CLVS) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Risk and Volatility
BIOLASE has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Clovis Oncology has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.
Valuation and Earnings
This table compares BIOLASE and Clovis Oncology's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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BIOLASE | $37.80 million | 3.50 | $-17,850,000.00 | ($0.77) | -1.18 |
Clovis Oncology | $143.01 million | 3.70 | $-400,420,000.00 | ($7.60) | -0.79 |
BIOLASE has higher earnings, but lower revenue than Clovis Oncology. BIOLASE is trading at a lower price-to-earnings ratio than Clovis Oncology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BIOLASE and Clovis Oncology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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BIOLASE | -58.34% | -541.14% | -45.22% |
Clovis Oncology | -230.34% | N/A | -57.56% |
Institutional & Insider Ownership
5.5% of BIOLASE shares are held by institutional investors. Comparatively, 57.8% of Clovis Oncology shares are held by institutional investors. 2.2% of BIOLASE shares are held by insiders. Comparatively, 6.6% of Clovis Oncology shares are held by 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 Ratings
This is a breakdown of recent recommendations for BIOLASE and Clovis Oncology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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BIOLASE | 0 | 0 | 1 | 0 | 3.00 |
Clovis Oncology | 2 | 2 | 2 | 0 | 2.00 |
BIOLASE currently has a consensus price target of $2.00, suggesting a potential upside of 120.46%. Clovis Oncology has a consensus price target of $8.80, suggesting a potential upside of 46.91%. Given BIOLASE's stronger consensus rating and higher probable upside, equities research analysts clearly believe BIOLASE is more favorable than Clovis Oncology.
Summary
Clovis Oncology beats BIOLASE on 8 of the 14 factors compared between the two stocks.