Cardio Diagnostics (NASDAQ:CDIO) and BG Medicine (OTCMKTS:BGMD) Critical Review

Cardio Diagnostics (NASDAQ:CDIO) and BG Medicine (OTCMKTS:BGMD) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Cardio Diagnostics and BG Medicine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardio Diagnostics	0	0	1	0	3.00
BG Medicine	0	0	0	0	0.00

Cardio Diagnostics currently has a consensus price target of $2.00, suggesting a potential upside of 354.55%. Given Cardio Diagnostics’ stronger consensus rating and higher possible upside, research analysts clearly believe Cardio Diagnostics is more favorable than BG Medicine.

Profitability

This table compares Cardio Diagnostics and BG Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardio Diagnostics	-22,732.03%	-258.85%	-191.20%
BG Medicine	N/A	N/A	N/A

Risk and Volatility

Cardio Diagnostics has a beta of 3.61, indicating that its share price is 261% more volatile than the S&P 500. Comparatively, BG Medicine has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

8.1% of Cardio Diagnostics shares are held by institutional investors. 22.3% of Cardio Diagnostics shares are held by insiders. Comparatively, 6.5% of BG Medicine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cardio Diagnostics and BG Medicine”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardio Diagnostics	$35,688.00	642.90	-$8.38 million	N/A	N/A
BG Medicine	N/A	N/A	N/A	N/A	N/A

BG Medicine has lower revenue, but higher earnings than Cardio Diagnostics.

Summary

Cardio Diagnostics beats BG Medicine on 7 of the 10 factors compared between the two stocks.

About Cardio Diagnostics

Cardio Diagnostics Holdings, Inc. develops and commercializes epigenetics-based clinical tests for cardiovascular disease. It offers Epi+Gen CHD, a three-year symptomatic coronary heart disease (CHD) risk assessment test targeting CHD events, including heart attacks; and PrecisionCHD, an integrated epigenetic-genetic blood test for the early detection of coronary heart disease. Cardio Diagnostics Holdings, Inc. was founded in 2017 and is headquartered in Chicago, Illinois.

About BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.