PAVmed (NASDAQ:PAVM) versus GBS (NYSE:GBS) Critical Analysis

GBS (NYSE:GBS) and PAVmed (NASDAQ:PAVM) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Risk & Volatility

GBS has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, PAVmed has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

2.8% of GBS shares are owned by institutional investors. Comparatively, 19.9% of PAVmed shares are owned by institutional investors. 0.3% of GBS shares are owned by insiders. Comparatively, 14.7% of PAVmed shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares GBS and PAVmed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	49.41	-$8.31 million	($0.56)	-2.61
PAVmed	$2.45 million	4.55	-$64.18 million	($8.19)	-0.13

GBS has higher earnings, but lower revenue than PAVmed. GBS is trading at a lower price-to-earnings ratio than PAVmed, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for GBS and PAVmed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	N/A
PAVmed	0	0	1	1	3.50

PAVmed has a consensus price target of $21.00, indicating a potential upside of 1,862.62%. Given PAVmed’s higher probable upside, analysts plainly believe PAVmed is more favorable than GBS.

Profitability

This table compares GBS and PAVmed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
PAVmed	-1,508.12%	N/A	-102.44%

Summary

PAVmed beats GBS on 8 of the 14 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

About PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.