Critical Analysis: electroCore (NASDAQ:ECOR) & OraSure Technologies (NASDAQ:OSUR)
by Kim Johansen · The Markets DailyelectroCore (NASDAQ:ECOR – Get Free Report) and OraSure Technologies (NASDAQ:OSUR – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
26.7% of electroCore shares are held by institutional investors. Comparatively, 93.5% of OraSure Technologies shares are held by institutional investors. 7.8% of electroCore shares are held by insiders. Comparatively, 4.7% of OraSure Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares electroCore and OraSure Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| electroCore | $32.03 million | 2.36 | -$13.97 million | ($1.66) | -5.05 |
| OraSure Technologies | $115.02 million | 2.28 | -$68.73 million | ($0.69) | -5.52 |
electroCore has higher earnings, but lower revenue than OraSure Technologies. OraSure Technologies is trading at a lower price-to-earnings ratio than electroCore, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for electroCore and OraSure Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| electroCore | 1 | 1 | 1 | 0 | 2.00 |
| OraSure Technologies | 1 | 2 | 0 | 0 | 1.67 |
electroCore presently has a consensus target price of $18.00, suggesting a potential upside of 114.54%. OraSure Technologies has a consensus target price of $3.00, suggesting a potential downside of 21.26%. Given electroCore’s stronger consensus rating and higher probable upside, analysts clearly believe electroCore is more favorable than OraSure Technologies.
Volatility and Risk
electroCore has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, OraSure Technologies has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Profitability
This table compares electroCore and OraSure Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| electroCore | -39.96% | N/A | -81.35% |
| OraSure Technologies | -43.70% | -19.09% | -16.26% |
Summary
electroCore beats OraSure Technologies on 9 of the 13 factors compared between the two stocks.
About electroCore
electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The company is developing gammaCore, a prescription only handheld device intended for regular or intermittent use for the acute treatment of pain associated with migraine and episodic cluster headache, as well as for the treatment of hemicrania continua and paroxysmal hemicrania. It also develops Truvaga for the support of general health and wellbeing; and TAC-STIM for human performance. In addition, the company offers gammacore Sapphire, a portable, reusable, rechargeable, and reloadable prescription medical device for various primary headache conditions. electroCore, Inc. was incorporated in 2005 and is headquartered in Rockaway, New Jersey.
About OraSure Technologies
OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.