AAC (NYSE: AAC) and BioTelemetry (NASDAQ:BEAT) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
64.3% of AAC shares are held by institutional investors. Comparatively, 87.1% of BioTelemetry shares are held by institutional investors. 37.3% of AAC shares are held by insiders. Comparatively, 9.6% of BioTelemetry 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.
This is a summary of recent recommendations and price targets for AAC and BioTelemetry, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AAC currently has a consensus price target of $10.00, indicating a potential downside of 7.24%. BioTelemetry has a consensus price target of $43.67, indicating a potential upside of 29.19%. Given BioTelemetry’s higher possible upside, analysts clearly believe BioTelemetry is more favorable than AAC.
This table compares AAC and BioTelemetry’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
AAC has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, BioTelemetry has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Earnings & Valuation
This table compares AAC and BioTelemetry’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AAC||$317.64 million||0.81||-$20.57 million||$0.60||17.97|
|BioTelemetry||$286.78 million||3.86||-$15.95 million||$0.97||34.85|
BioTelemetry has lower revenue, but higher earnings than AAC. AAC is trading at a lower price-to-earnings ratio than BioTelemetry, indicating that it is currently the more affordable of the two stocks.
BioTelemetry beats AAC on 10 of the 14 factors compared between the two stocks.
AAC Holdings, Inc. provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States. Its therapy services include motivational interviewing, cognitive behavioral therapy, rational emotive behavior therapy, dialectical behavioral therapy, solution-focused therapy, eye movement desensitization and reprocessing, and systematic family intervention. As of December 31, 2017, the company operated 9 residential substance abuse treatment facilities, 19 standalone outpatient centers, and 5 sober living facilities with a total of 1,348 combined residential and sober living beds. It also offers Internet marketing services to families and individuals struggling with addiction and seeking treatment options through online directories of treatment providers, treatment provider reviews, forums, and professional communities; and online marketing solutions to other treatment providers, such as facility profiles, audience targeting, lead generation, and tools for digital reputation management. In addition, the company performs drug testing and diagnostic laboratory services; and provides physician services to its clients. AAC Holdings, Inc. was founded in 2014 and is headquartered in Brentwood, Tennessee.
BioTelemetry, Inc., a mobile and wireless medical technology company, provides cardiac and mobile blood glucose monitoring (BGM), centralized medical imaging, and original equipment manufacturing services for the healthcare and clinical research industries. It operates in three segments: Healthcare, Research, and Technology. The Healthcare segment focuses on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders. This segment offers mobile cardiac telemetry service; and event monitoring services to prescribe wireless event, digital loop event, memory loop event, and non-loop event monitors. It also provides Holter and extended-wear Holter monitors, and pacemaker and international normalized ratio monitoring services to cardiologists and electrophysiologists, neurologists, and primary care physicians. The Research segment offers laboratory services, including cardiac monitoring, imaging, scientific consulting, and data management services for drug, medical treatment, and device trials to pharmaceutical companies and contract research organizations. This segment's centralized services comprise ECG, Holter monitoring, ambulatory blood pressure monitoring, echocardiography, multigated acquisition scan, protocol development, expert reporting, and statistical analysis. It also provides support services, such as project coordination, setup and management, equipment rental, data transfer, processing, analysis, and 24/7 customer support and site training. The Technology segment focuses on the manufacture, engineering, and development of non-invasive cardiac monitors for healthcare companies, clinics, and hospitals worldwide. This segment offers various devices that include event monitors, digital Holter monitors, and mobile cardiac telemetry monitors, as well as a wireless BGM system. BioTelemetry, Inc. is headquartered in Malvern, Pennsylvania.
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