Reviewing KORU Medical Systems (NASDAQ:KRMD) and INVO Bioscience (NASDAQ:INVO)

KORU Medical Systems (NASDAQ:KRMD) and INVO Bioscience (NASDAQ:INVO) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares KORU Medical Systems and INVO Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KORU Medical Systems	-37.42%	-24.60%	-16.87%
INVO Bioscience	-122.79%	N/A	-36.94%

Insider and Institutional Ownership

58.6% of KORU Medical Systems shares are owned by institutional investors. Comparatively, 12.0% of INVO Bioscience shares are owned by institutional investors. 25.6% of KORU Medical Systems shares are owned by company insiders. Comparatively, 3.5% of INVO Bioscience shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

KORU Medical Systems has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, INVO Bioscience has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for KORU Medical Systems and INVO Bioscience, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KORU Medical Systems	0	0	3	1	3.25
INVO Bioscience	0	0	0	0	0.00

KORU Medical Systems currently has a consensus target price of $4.13, suggesting a potential upside of 4.17%. Given KORU Medical Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe KORU Medical Systems is more favorable than INVO Bioscience.

Valuation & Earnings

This table compares KORU Medical Systems and INVO Bioscience”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KORU Medical Systems	$31.99 million	5.67	-$13.74 million	($0.25)	-15.84
INVO Bioscience	$5.77 million	0.57	-$8.03 million	N/A	N/A

INVO Bioscience has lower revenue, but higher earnings than KORU Medical Systems.

Summary

KORU Medical Systems beats INVO Bioscience on 10 of the 13 factors compared between the two stocks.

About KORU Medical Systems

KORU Medical Systems, Inc. develops and manufactures medical devices and supplies in the United States and internationally. It offers the freedom infusion systems to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Its products include the FREEDOM60 syringe infusion system, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing products. The company was incorporated in 1980 and is based in Mahwah, New Jersey.

About INVO Bioscience

INVO Bioscience, Inc., together with its subsidiary, a healthcare services fertility company, provides assisted reproductive technology solutions worldwide. It offers INVOcell, a medical device that allows fertilization and early embryo development to take place in vivo within the woman’s body. The company was founded in 2007 and is based in Sarasota, Florida.