Financial Comparison: Edap Tms (NASDAQ:EDAP) versus Sinopharm Group (OTCMKTS:SHTDY)

Edap Tms (NASDAQ:EDAP) and Sinopharm Group (OTCMKTS:SHTDY) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Edap Tms and Sinopharm Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edap Tms	0	0	2	0	3.00
Sinopharm Group	0	0	0	0	N/A

Edap Tms currently has a consensus price target of $14.00, suggesting a potential upside of 368.23%. Given Edap Tms’ higher probable upside, equities analysts plainly believe Edap Tms is more favorable than Sinopharm Group.

Earnings & Valuation

This table compares Edap Tms and Sinopharm Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edap Tms	$62.05 million	1.79	-$22.92 million	($0.54)	-5.54
Sinopharm Group	N/A	N/A	N/A	$4.99	2.52

Sinopharm Group has lower revenue, but higher earnings than Edap Tms. Edap Tms is trading at a lower price-to-earnings ratio than Sinopharm Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Edap Tms and Sinopharm Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edap Tms	-31.68%	-36.41%	-22.25%
Sinopharm Group	N/A	N/A	N/A

Institutional & Insider Ownership

62.7% of Edap Tms shares are held by institutional investors. 0.2% of Edap Tms shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

About Edap Tms

EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. The company operates through High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST) segments. The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment also offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology; and offers Sonolith i-move, an extracorporeal shockwave lithotripter, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. It markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. The company serves hospitals, urology clinics, and research institutions. EDAP TMS S.A. was incorporated in 1979 and is based in Lyon, France.

About Sinopharm Group

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and medical devices and healthcare products in the People’s Republic of China. The company operates through four segments: Pharmaceutical Distribution, Medical Devices, Retail Pharmacy, and Other Business. The Pharmaceutical Distribution segment distributes pharmaceutical products to hospitals, other distributors, retail pharmacy stores, and clinics. This segment also offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. The Medical Devices segment distributes medical devices. The Retail Pharmacy segment operates and franchises a network of retail drug stores. The Other Business segment engages in the production and sale of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents and manages properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products; and offers information technology, investment, goods and technology import and export, business consulting, health consultation, medical consulting, market information consulting and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, and technology training activities. The company was founded in 2003 and is headquartered in Shanghai, the People’s Republic of China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.