The four Canadian medical tech stocks we’ve examined offer innovative tech products with a high Return on Equity (ROE)
SmallCapPower | May 27, 2019: Medicine is a field that needs to constantly evolve to keep up with changes in technology to provide the most effective patient care. Today, we have found four Canadian medical tech stocks that have generated a Return on Equity greater than 10% and are helping to pave the way for more precise diagnostics and remote patient care. A high Return on Equity measures how effectively management is utilizing the Company’s assets to generate profits. For reference, the stocks were chosen from a list of 561 companies trading on the TSX/TSXV with a Return on Equity greater than zero. The sample size has a median Return on Equity of 9.3%.
*Share prices as at close May 24, 2019, data obtained from S&P Capital IQ
Assure Holdings Corp. (TSXV:IOM) – $1.58
Health Care Services
Assure Holdings, based in Denver, Colorado, specializes in delivering technical and professional surgical support services that involve the use of interoperative neuromonitoring procedures (IONM). IONM technology is used to evaluate the function of a patient’s nerves and spinal cord during varying surgical procedures. The Company earns revenue from out-of-network fees, which include net patient service fee, and contract fees, which are earned from hospital and surgery center customers. On March 27, 2019, the Company announced its partnership with a four-surgeon group that operates in five facilities in Lafayette, Louisiana and sees approximately 500 cases per year. This partnership brings the Company’s overall amount of spine and neurosurgeons that they work with in Louisiana to 15. On April 15, 2019, the Company reported revenue of $14.8M, and a 79% increase in managed case volume.
- Market Cap: $52.9 Million
- Return on Equity: +83.9%
- YTD Return: -22.9%
LED Medical Diagnostics Inc. (TSXV:LMD) – $0.37
Health Care Equipment
LED Medical Diagnostics is based in Vancouver, Canada and focuses on developing and marketing diagnostic dental imaging products and software in North America. A few of the Company’s product offerings include a Vx system, which is used to gain a visual of people’s throats to help diagnosis conditions such as oral cancer and XV4 Mobile, which is used for patient follow up and for emergency purposes in the operating room or at home. Additionally, the Company offers XrayVision DICOM Capture View, which is used for dental imaging. The Company also offers data mapping and database conversion services.
- Market Cap: $14.4 Million
- Return on Equity: +23.6%
- YTD Return: +1.4%
Viemed Healthcare Inc. (TSX:VMD) – $9.03
Health Care Services
Viemed Healthcare provides in-home health care solutions in the United States. VHI provides respiratory services & related equipment, along with respiratory disease management, neuromuscular care, and oxygen therapy services. Viemed also provides education and counseling to patients using their technology. The Company has relationships with hospitals and pulmonologists in over half of the U.S. states.
- Market Cap: $340.3 Million
- Return on Equity: +31.6%
- YTD Return: 72.6%
VitalHub Corp. (TSXV:VHI) – $0.18
Health Care Technology
VitalHub develops technology solutions for Health and Human Service providers in the Mental Health, Long Term Care, Community Health Service, Home Health, Social Service, and Acute Care sectors. Some of the technologies VitalHub develops includes Blockchain, Mobile, Patient Flow, Web-Based Assessment, and Electronic Health Record Solutions. VitalHub has over 200 clients across North America, and is based in Toronto, Canada, with an offshore development hub in Sri Lanka.
- Market Cap: $27.3 Million
- Return on Equity: +11.7%
- YTD Return: 21.4%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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