Advanced BioMedical Technologies (OTCMKTS:ABMT) and Accelerate Diagnostics (NASDAQ:AXDX) Critical Review

Accelerate Diagnostics (NASDAQ:AXDX) and Advanced BioMedical Technologies (OTCMKTS:ABMT) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

17.1% of Accelerate Diagnostics shares are held by institutional investors. 43.6% of Accelerate Diagnostics shares are held by insiders. Comparatively, 34.1% of Advanced BioMedical Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accelerate Diagnostics and Advanced BioMedical Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accelerate Diagnostics	-332.22%	N/A	-176.88%
Advanced BioMedical Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Accelerate Diagnostics and Advanced BioMedical Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accelerate Diagnostics	0	1	1	0	2.50
Advanced BioMedical Technologies	0	0	0	0	N/A

Accelerate Diagnostics presently has a consensus target price of $1.00, indicating a potential downside of 47.09%. Given Accelerate Diagnostics’ higher probable upside, equities analysts clearly believe Accelerate Diagnostics is more favorable than Advanced BioMedical Technologies.

Risk and Volatility

Accelerate Diagnostics has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Advanced BioMedical Technologies has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500.

Earnings and Valuation

This table compares Accelerate Diagnostics and Advanced BioMedical Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accelerate Diagnostics	$12.23 million	3.41	-$61.62 million	($4.07)	-0.46
Advanced BioMedical Technologies	$270,000.00	0.16	-$510,000.00	N/A	N/A

Advanced BioMedical Technologies has lower revenue, but higher earnings than Accelerate Diagnostics.

Summary

Accelerate Diagnostics beats Advanced BioMedical Technologies on 7 of the 10 factors compared between the two stocks.

About Accelerate Diagnostics

Accelerate Diagnostics, Inc., an in vitro diagnostics company, provides solutions for the diagnosis of serious infections in the United States, Europe, and the Middle East. The company offers Accelerate Pheno system, an in vitro diagnostic platform for the identification and antibiotic susceptibility testing of pathogens associated with serious or health care-associated infections, including gram-positive and gram-negative organisms. It also provides the Accelerate PhenoTest, a test kit for the system, which provides identify and antibiotic susceptibility testing results for patients suspected of bacteremia or fungemia, both life-threatening conditions with high morbidity and mortality risk. The company was formerly known as Accelr8 Technology Corporation and changed its name to Accelerate Diagnostics, Inc. in December 2012. Accelerate Diagnostics, Inc. was incorporated in 1982 and is headquartered in Tucson, Arizona.

About Advanced BioMedical Technologies

Advanced Biomedical Technologies, Inc., a development stage company, designs, develops, manufactures, and markets biomaterial internal fixation devices. It offers polymer osteosynthesis devices, such as surgical screws, binding wires, rods, and related medical devices for the treatment of orthopedic trauma, sports-related medical treatment, cartilage repair, and related treatments, as well as for reconstructive dental procedures. The company was formerly known as Geostar Mineral Corporation and changed its name to Advanced Biomedical Technologies, Inc. in March 2009. Advanced Biomedical Technologies, Inc. was founded in 2002 and is based in New York, New York.