Critical Review: Research Solutions (NASDAQ:RSSS) & CardioGenics (OTCMKTS:CGNH)

Research Solutions (NASDAQ:RSSS) and CardioGenics (OTCMKTS:CGNH) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

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

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

Analyst Ratings

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

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

Research Solutions currently has a consensus price target of $5.50, indicating a potential upside of 83.95%. Given Research Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Research Solutions is more favorable than CardioGenics.

Volatility & Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Solutions	$48.21 million	2.02	-$3.79 million	($0.15)	-19.93
CardioGenics	N/A	N/A	N/A	N/A	N/A

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

Institutional and Insider Ownership

33.6% of Research Solutions shares are held by institutional investors. 12.9% of Research Solutions shares are held by insiders. Comparatively, 41.4% of CardioGenics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

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.

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.