Trimedyne (OTCMKTS:TMED) and Rockwell Medical (NASDAQ:RMTI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Trimedyne has a beta of -1.18, indicating that its stock price is 218% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Earnings & Valuation

This table compares Trimedyne and Rockwell Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trimedyne $5.57 million 0.10 $230,000.00 N/A N/A
Rockwell Medical $63.39 million 2.48 -$32.13 million ($0.47) -5.23

Trimedyne has higher earnings, but lower revenue than Rockwell Medical.

Analyst Ratings

This is a summary of recent recommendations for Trimedyne and Rockwell Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trimedyne 0 0 0 0 N/A
Rockwell Medical 0 0 4 0 3.00

Rockwell Medical has a consensus price target of $9.33, indicating a potential upside of 279.40%. Given Rockwell Medical’s higher possible upside, analysts clearly believe Rockwell Medical is more favorable than Trimedyne.

Institutional and Insider Ownership

21.4% of Rockwell Medical shares are owned by institutional investors. 11.1% of Trimedyne shares are owned by insiders. Comparatively, 3.9% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Trimedyne and Rockwell Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trimedyne N/A N/A N/A
Rockwell Medical -57.77% -139.38% -68.00%

About Trimedyne

Trimedyne, Inc. manufactures and sells lasers, and disposable and reusable fiber-optic laser devices for use in the medical field. It offers lasers, fibers, needles, and switch tips for use in orthopedics, urology, ear and nose surgery, throat surgery, gynecology, gastrointestinal surgery, general surgery, and other medical specialties. The company also provides 80 watt and 30 watt holmium lasers, and side firing laser needles to treat herniated or ruptured spinal discs. In addition, it engages in the provision of services, and rental of lasers and other medical equipment to hospitals and surgery centers on a fee-per-case basis. The company operates in Asia, Europe, Latin America, the Middle East, Australia, and internationally. It markets its products through commission sales representatives in the United States and independent distributors internationally. Trimedyne, Inc. was founded in 1980 and is based in Irvine, California.

About Rockwell Medical

Rockwell Medical, Inc. operates as a specialty pharmaceutical company that targets end-stage renal disease and chronic kidney disease with therapies and products for the treatment of iron deficiency and hemodialysis. The company offers Triferic, an iron therapy that replaces iron and maintains hemoglobin in dialysis patients without increasing iron stores; and Calcitriol, an active vitamin D injection for the management of hypocalcemia in patients undergoing chronic hemodialysis. It is also developing an intravenous formulation of Triferic for use by hemodialysis patients. In addition, the company manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, RenalPure powder bicarbonate concentrate, and SteriLyte liquid bicarbonate concentrate; and ancillary products, including blood tubing, fistula needles, dialyzers, drugs, specialized component kits, dressings, cleaning agents, filtration salts, and other supplies used by hemodialysis providers. Its dialysis concentrate products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell Medical, Inc. sells its products directly, as well as through independent sales agents and distributors. Its target customers include senior and operating management of dialysis companies, dialysis service providers, nephrologists, clinic administrators, nurses, medical directors, and technical and purchasing personnel. Rockwell Medical, Inc. was founded in 1994 and is based in Wixom, Michigan.

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