Critical Comparison: CardioGenics (OTCMKTS:CGNH) vs. Research Solutions (NASDAQ:RSSS)

CardioGenics (OTCMKTS:CGNH) and Research Solutions (NASDAQ:RSSS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CardioGenics and Research Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CardioGenics	0	0	0	0	0.00
Research Solutions	0	0	2	0	3.00

Research Solutions has a consensus target price of $5.50, indicating a potential upside of 79.15%. Given Research Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Research Solutions is more favorable than CardioGenics.

Earnings and Valuation

This table compares CardioGenics and Research Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CardioGenics	N/A	N/A	N/A	N/A	N/A
Research Solutions	$48.21 million	2.08	-$3.79 million	($0.15)	-20.47

CardioGenics has higher earnings, but lower revenue than Research Solutions.

Insider & Institutional Ownership

33.6% of Research Solutions shares are owned by institutional investors. 41.4% of CardioGenics shares are owned by insiders. Comparatively, 12.9% of Research Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CardioGenics and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CardioGenics	N/A	N/A	N/A
Research Solutions	-8.41%	-6.59%	-1.96%

Volatility & Risk

CardioGenics has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

About CardioGenics

CardioGenics Holdings Inc. engages in the development and commercialization of diagnostic test products for the in vitro diagnostics testing market in the United States, Canada, Europe, and internationally. Its products include QL Care Analyzer, a portable, stand-alone, and automated point-of-care (POC) immunoassay analyzer that uses a proprietary self-metering cartridge to perform immunoassay tests at the POC; a series of immunoassay tests to identify cardiac markers in the blood at the time of a heart attack; and paramagnetic beads that are used as solid surfaces in heterogeneous immunoassay tests by clinical and research laboratories. The company was formerly known as Jag Media Holdings, Inc. and changed its name to CardioGenics Holdings Inc. in 2009. The company was founded in 1997 and is headquartered in Mississauga, Canada.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.