Company valuation can be assessed through various ways, intrinsically or relatively. For small companies with a developing business structure, professionals prefer to use an Enterprise Value/Revenue multiple as a gauge into the relative inexpensiveness of a stock. Within the Canadian healthcare sector, valuations have seen multiples go as high as 500x revenue, as in the case of Knight Therapeutics Inc. (TSX: GUD). Thus, the stocks on our list today represent the best value amongst the Canadian healthcare juniors.
Prism Medical Ltd. (TSXV: PM) – $10.10
Medical Equipment, Supplies & Distribution
Prism Medical Ltd. is a provider of equipment and services used to move and handle mobility challenged individuals. The Company’s products are marketed under the brand names of Prism Medical, Ergosafe, Waverley Glen and Nightingale. Prism manufactures a line of products, including fixed ceiling lifts, portable ceiling lifts, floor lifts, slings, shower chairs and other ancillary patient handling products.
- Market Cap: $50,000,736
- Revenue (LFQ): $50,260,000
- Operating Income (LTM): $2,339,000
- EV/Revenue: 1.2x
>> Read More: 5 Canadian Tech Stocks with 40%+ Trading Volume Increases
Medical Facilities Corp. (TSX: DR) – $16.09
Healthcare Facilities & Services
Medical Facilities Corporation is a Canada-based specialty surgical hospital. The Company, through its subsidiaries Medical Facilities America, Inc. and Medical Facilities (USA) Holdings, Inc., owns controlling interests in six limited liability entities (the Centers), each of which owns a specialty surgical hospital (SSH) or an ambulatory surgery center (ASC) located in the United States. ASCs are specialized surgical centers that provide outpatient procedures, whereas SSHs are licensed for inpatient and outpatient surgeries.
- Market Cap: $506,021,610
- Revenue (LFQ): $375,828,705
- Operating Income (LTM): $88,916,395
- EV/Revenue: 1.5x
Nuvo Research Inc. (TSX: NRI) – $6.60
Pharmaceuticals
Nuvo Research Inc. (Nuvo) is a Canada-based pharmaceutical company, which operates two business units: the Topical Products and Technology (TPT) Group and the Immunology Group. The TPT Group has four commercial products, a pipeline of topical and transdermal drug delivery (TTDD) products, focusing on various therapeutic areas, including pain and dermatology and multiple drug delivery platforms that support the development of formulations that can deliver actives into or through the skin.
- Market Cap: $73,637,025
- Revenue (LFQ): $14,230,000
- Operating Income (LTM): $35,233,000
- EV/Revenue: 1.5x
>> Read More: 4 Metals and Mining Stocks Trading at Less Than 1x Revenue
DMD Digital Health Connections Group Inc. (TSXV: DMG.H) – $0.26
Healthcare Facilities & Services
DMD Digital Health Connections Group Inc. (DMD), formerly known as Aptilon Corporation, is a Canada-based company, which enables pharmaceutical, pharmaceutical marketing companies, digital advertising agencies and medical device companies to reach, message, connect and interact with the United States physicians and healthcare professionals via multiple access channels. The Company’s service offerings provide focused impressions and interactions through permission-based e-mail, targeted online ad-serving and mobile application advertising channels.
- Market Cap: $51,885,522
- Revenue (LFQ): $24,911,000
- Operating Income (LTM): $7,484,000
- EV/Revenue: 2.4x
Sienna Senior Living Inc. (TSXV: SIA) – $17.21
Healthcare Facilities & Services
Sienna Senior Living Inc., formerly Leisureworld Senior Care Corporation, is a Canada-based company, which owns seniors housing and provides long-term care in Ontario. The Company operates approximately 35 long-term care (LTC) homes, one independent living (IL) residence and over 10 retirement residence (RR) communities.
- Market Cap: $620,862,570
- Revenue (LFQ): $461,172,000
- Operating Income (LTM): $26,280,000
- EV/Revenue: 2.6x
