Restoration Robotics (NASDAQ:HAIR) and Luminex (NASDAQ:LMNX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Valuation and Earnings
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This table compares Restoration Robotics and Luminex’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Restoration Robotics||$21.30 million||1.59||-$17.84 million||($2.50)||-0.33|
|Luminex||$315.82 million||3.63||$18.50 million||$0.48||53.56|
Luminex has higher revenue and earnings than Restoration Robotics. Restoration Robotics is trading at a lower price-to-earnings ratio than Luminex, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
32.1% of Restoration Robotics shares are held by institutional investors. Comparatively, 84.3% of Luminex shares are held by institutional investors. 37.8% of Restoration Robotics shares are held by insiders. Comparatively, 7.4% of Luminex shares are held 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.
This table compares Restoration Robotics and Luminex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Restoration Robotics and Luminex, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Restoration Robotics currently has a consensus price target of $8.50, suggesting a potential upside of 924.10%. Luminex has a consensus price target of $27.00, suggesting a potential upside of 5.02%. Given Restoration Robotics’ stronger consensus rating and higher probable upside, research analysts clearly believe Restoration Robotics is more favorable than Luminex.
Luminex pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Restoration Robotics does not pay a dividend. Luminex pays out 50.0% of its earnings in the form of a dividend.
Risk & Volatility
Restoration Robotics has a beta of 4.98, indicating that its stock price is 398% more volatile than the S&P 500. Comparatively, Luminex has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
Luminex beats Restoration Robotics on 10 of the 16 factors compared between the two stocks.
Restoration Robotics Company Profile
Restoration Robotics, Inc., a medical device company, develops and commercializes image-guided robotic systems in the United States and internationally. The company offers ARTAS System, a physician-assisted robotic system that identifies and dissects hair follicular units directly from the scalp and creates recipient implant sites. Its system includes the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. The company was founded in 2002 and is headquartered in San Jose, California.
Luminex Company Profile
Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the diagnostics, pharmaceutical, and research industries worldwide. Its products include Luminex 100/200 that integrates fluidics, optics, and digital signal processing; FLEXMAP 3D system for use as a general laboratory instrument; MAGPIX system, a multiplexing analyzer for qualitative and quantitative analysis of proteins and nucleic acids; ARIES system, a sample to answer real-time PCR platform; ARIES M1 system, a single-module version of the ARIES System; and VERIGENE system, an automated multiplex-capable system. The company also provides MicroPlex, MagPlex, xTAG, SeroMAP, and calibration and control microspheres; xPONENT, a software suite to simplify laboratory workflow and enhance productivity; SYNCT data management software solutions; and xTAG assays and products to identify the causative agent for respiratory and gastrointestinal infections, as well as IVD kits for cystic fibrosis genotyping and pharmacogenetic assays used to profile genetic mutations related to drug metabolism. In addition, it offers MultiCode assays and products comprising HSV 1&2 assays, analyte specific reagents, and other products to detect infectious agents in clinical samples; ARIES cassettes that are self-contained assay consumables, such as ARIES HSV 1&2 assays, ARIES FLU A/B and RSV assays, ARIES group B strep assays, ARIES group A strep assays, ARIES bordetella assays, and ARIES C. difficile assays; and VERIGENE test cartridges, as well as operates as an original equipment manufacturer of custom reagents and instrumentation. The company serves pharmaceutical companies, clinical laboratories, and research and medical institutions. Luminex Corporation was founded in 1995 and is based in Austin, Texas.