Critical Contrast: Meihua International Medical Technologies (NASDAQ:MHUA) and Cerus (NASDAQ:CERS)

Meihua International Medical Technologies (NASDAQ:MHUA) and Cerus (NASDAQ:CERS) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

1.2% of Meihua International Medical Technologies shares are held by institutional investors. Comparatively, 78.4% of Cerus shares are held by institutional investors. 66.6% of Meihua International Medical Technologies shares are held by insiders. Comparatively, 3.4% of Cerus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Meihua International Medical Technologies and Cerus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meihua International Medical Technologies	$94.25 million	0.13	$11.62 million	N/A	N/A
Cerus	$176.23 million	1.80	-$37.49 million	($0.11)	-15.55

Meihua International Medical Technologies has higher earnings, but lower revenue than Cerus.

Analyst Ratings

This is a summary of recent recommendations for Meihua International Medical Technologies and Cerus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meihua International Medical Technologies	0	0	0	0	0.00
Cerus	0	1	3	0	2.75

Cerus has a consensus target price of $3.63, suggesting a potential upside of 111.99%. Given Cerus’ stronger consensus rating and higher probable upside, analysts plainly believe Cerus is more favorable than Meihua International Medical Technologies.

Volatility and Risk

Meihua International Medical Technologies has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Cerus has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Meihua International Medical Technologies and Cerus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meihua International Medical Technologies	N/A	N/A	N/A
Cerus	-11.19%	-37.90%	-10.35%

Summary

Cerus beats Meihua International Medical Technologies on 7 of the 12 factors compared between the two stocks.

About Meihua International Medical Technologies

Meihua International Medical Technologies Co., Ltd. engages in the manufacture, sells, and marketing of medical consumables in the People's Republic of China. The company offers class I, II, and III disposable medical devices. Its products include non-bottled products, such as brushes and ID bracelets; and polyethylene bottled products, such as eye drop and tablet bottles, as well as electronic pumps. The company also distributes disposable medical devices sourced from other manufacturers to customers in China. In addition, it offers COVID-19 products comprising disposable medical masks. The company serves hospitals, pharmacies, medical institutions, and medical equipment companies. It also exports its products to Europe, North America, South America, Asia, Africa, and Oceania. The company was founded in 1991 and is based in Yangzhou, the People's Republic of China. Meihua International Medical Technologies Co., Ltd. operates as a subsidiary of Bright Accomplish Limited.

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.