Profound Medical (NASDAQ:PROF – Get Free Report) and Cerus (NASDAQ:CERS – Get Free Report) 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, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Profound Medical and Cerus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Profound Medical | -349.41% | -85.22% | -64.87% |
| Cerus | -11.60% | -40.55% | -11.12% |
Volatility & Risk
Profound Medical has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Cerus has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Profound Medical | $10.68 million | 12.02 | -$28.57 million | ($1.22) | -3.50 |
| Cerus | $185.14 million | 1.35 | -$37.49 million | ($0.10) | -13.10 |
Profound Medical has higher earnings, but lower revenue than Cerus. Cerus is trading at a lower price-to-earnings ratio than Profound Medical, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Profound Medical and Cerus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Profound Medical | 0 | 0 | 2 | 0 | 3.00 |
| Cerus | 0 | 0 | 2 | 0 | 3.00 |
Profound Medical currently has a consensus price target of $11.50, indicating a potential upside of 169.32%. Cerus has a consensus price target of $3.50, indicating a potential upside of 167.18%. Given Profound Medical’s higher possible upside, equities analysts clearly believe Profound Medical is more favorable than Cerus.
Insider and Institutional Ownership
47.9% of Profound Medical shares are held by institutional investors. Comparatively, 78.4% of Cerus shares are held by institutional investors. 1.5% of Profound Medical shares are held by company insiders. Comparatively, 5.6% of Cerus shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Cerus beats Profound Medical on 8 of the 12 factors compared between the two stocks.
About Profound Medical
Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.
About Cerus
Cerus Corporation operates as a biomedical products company. The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced. It sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was incorporated in 1991 and is headquartered in Concord, California.
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