Tivity Health (NASDAQ:TVTY) and Baudax Bio (NASDAQ:BXRX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Profitability
This table compares Tivity Health and Baudax Bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Tivity Health | -47.44% | 128.43% | 6.11% |
| Baudax Bio | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings for Tivity Health and Baudax Bio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Tivity Health | 1 | 2 | 5 | 0 | 2.50 |
| Baudax Bio | 0 | 0 | 2 | 0 | 3.00 |
Tivity Health presently has a consensus price target of $22.1250, indicating a potential downside of 7.81%. Baudax Bio has a consensus price target of $13.50, indicating a potential upside of 1,150.00%. Given Baudax Bio's stronger consensus rating and higher possible upside, analysts plainly believe Baudax Bio is more favorable than Tivity Health.
Volatility & Risk
Tivity Health has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500. Comparatively, Baudax Bio has a beta of 2.56, indicating that its share price is 156% more volatile than the S&P 500.
Insider and Institutional Ownership
91.6% of Tivity Health shares are held by institutional investors. Comparatively, 7.9% of Baudax Bio shares are held by institutional investors. 11.8% of Tivity Health shares are held by company insiders. Comparatively, 13.1% of Baudax Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Tivity Health and Baudax Bio's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Tivity Health | $1.13 billion | 1.04 | $-286,820,000.00 | $2.02 | 11.88 |
| Baudax Bio | N/A | N/A | $-32,560,000.00 | ($3.48) | -0.31 |
Baudax Bio has lower revenue, but higher earnings than Tivity Health. Baudax Bio is trading at a lower price-to-earnings ratio than Tivity Health, indicating that it is currently the more affordable of the two stocks.
Summary
Baudax Bio beats Tivity Health on 7 of the 13 factors compared between the two stocks.
