Pervasip (OTCMKTS:PVSP) vs. ChromaDex (NASDAQ:CDXC) Critical Review

ChromaDex (NASDAQ:CDXC) and Pervasip (OTCMKTS:PVSP) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ChromaDex and Pervasip, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChromaDex	0	0	2	0	3.00
Pervasip	0	0	0	0	N/A

ChromaDex presently has a consensus price target of $6.00, suggesting a potential upside of 102.70%. Given ChromaDex’s higher probable upside, analysts plainly believe ChromaDex is more favorable than Pervasip.

Insider & Institutional Ownership

15.4% of ChromaDex shares are held by institutional investors. 9.6% of ChromaDex shares are held by company insiders. Comparatively, 9.2% of Pervasip shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ChromaDex and Pervasip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChromaDex	-4.24%	-12.61%	-6.54%
Pervasip	-15.67%	N/A	-21.75%

Earnings and Valuation

This table compares ChromaDex and Pervasip’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChromaDex	$83.57 million	2.68	-$4.94 million	($0.05)	-59.20
Pervasip	$15.77 million	0.09	-$2.35 million	N/A	N/A

Pervasip has lower revenue, but higher earnings than ChromaDex.

Risk & Volatility

ChromaDex has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Pervasip has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Summary

ChromaDex beats Pervasip on 9 of the 11 factors compared between the two stocks.

About ChromaDex

ChromaDex Corporation operates as a bioscience company focusing on developing healthy aging products. The company operates through three segments: Consumer products; Ingredients; and Analytical Reference Standards and Services. It researches nicotinamide adenine dinucleotide (NAD+); provides finished dietary supplement products that contain its proprietary ingredients directly to consumers and distributors; and develops and commercializes proprietary-based ingredient technologies and supplies these ingredients as raw materials to the manufacturers of consumer products. The company also commercializes NAD+ precursor nicotinamide riboside as the flagship ingredient NIAGEN; NIAGEN as an active ingredient in its consumer products under the TRU NIAGEN name; and Immulina, a spirulina extract with predominant active compounds of Braun-type lipoproteins for supporting human immune function. In addition, it offers phytochemical reference standards, and other research and development services. The company distributes TRU NIAGEN products direct to consumers through its propriety e-commerce platform TRUNIAGEN.com, Amazon, ShopHQ, and other internet marketplaces, as well as specialty retailers and direct healthcare practitioners in the United States. ChromaDex Corporation was founded in 1999 and is headquartered in Los Angeles, California.

About Pervasip

Pervasip Corporation focuses on developing cloud-based applications to monitor and control greenhouse facilities. It intends to develop and deliver products and technologies to agricultural markets; develop scientific methods for the analysis of cannabinoids in flowers, concentrates, and edibles; and assist medical marijuana specialty production facilities to regulate, calculate proper dosage, and understand the importance of consistency in product. The company was formerly known as eLEC Communications Corp. and changed its name to Pervasip Corp. in December 2007. Pervasip Corp. was founded in 1964 and is based in White Plains, New York.