Macroaxis Stories

Novo Integrated Sciences vs Assure Holdings Corp

June 10, 2024  By Aina Ster
Macroaxis Story
In the world of investing, it's often said that risk and reward go hand in hand. This is particularly true when examining the potential returns of Novo Integrated Sciences and Assure Holdings Corp, two public companies operating in the Medical Care Facilities industry. Assure Holdings Corp, traded on NASDAQ, has a market capitalization of $4.1M and a book value of -2.28, indicating a loss. Despite a negative return on assets of -0.79 and a quarterly revenue growth of -0.7, analysts maintain a strong buy consensus on the stock, with an estimated target price of $4. The company's PEG ratio stands at 0.1939, suggesting that it may be undervalued relative to its earnings growth. However, with a possible downside price of 0.0047, investors should be prepared for potential volatility. Assure Holdings Corp's stock seems poised for a correction, as it trails behind Novo Integrated, which saw a 13.67% increase in share price today. Many traders are steering clear of the healthcare equipment and supplies sector, making it worthwhile to delve deeper into Assure Holdings Corp's performance compared to Novo Integrated and similar companies. We'll focus on the competitive dynamics between Assure and Novo.
Published over six months ago
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Reviewed by Rifka Kats

Analyzing basic indicators between Assure Holdings and Novo allows for a comparison of the impact of market volatilities on both companies' prices. This can help determine if combining them in a portfolio can diversify away market risk. Pair trading strategies can also be utilized, matching a long position in Novo with a short position in Assure Holdings. For more information, refer to our pair correlation module. Focusing on assets, the asset utilization indicator shows the revenue earned for every dollar of assets a company reports. Assure Holdings has an asset utilization ratio of 3.39 percent, indicating that the company earns $0.0339 for each dollar of assets. An increasing asset utilization suggests that Assure Holdings Corp is becoming more efficient in using its assets for daily operations.

Major Takeaways

Assure Holdings Corp, a player in the Medical Care Facilities industry, has been showing some interesting financial indicators that could suggest potential for returns. Despite a negative Return On Assets of 0.79, indicating a loss, the company has managed to maintain a healthy Gross Profit of $14.9 million. The company's Coefficient Of Variation stands at 1.1K, suggesting a high level of risk relative to the potential return. However, with a Wall Street Target Price of $4, significantly higher than the current Last Price of $0.47, there could be substantial upside potential for investors willing to take on the risk.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Assure or Novo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Assure Holdings's Liquidity

Assure Holdings financial leverage refers to using borrowed capital as a funding source to finance Assure Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Assure Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Assure Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Assure Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Assure Holdings's total debt and its cash.

Correlation Between Assure and Novo Integrated Sciences

In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Assure Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Novo Integrated to your portfolio. If Novo Integrated is not perfectly correlated to Assure Holdings it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Assure Holdings, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Assure Holdings and Novo Integrated in your portfolio? Please note if you are using this as a pair-trade strategy between Assure Holdings and Novo Integrated, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between IONM and NVOS for more information.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Assure Holdings revenue. Based on the latest financial disclosure, Assure Holdings Corp reported 255 K of revenue.
This is 100.0% lower than that of the Health Care Equipment & Supplies sector and significantly higher than that of the Health Care industry. The revenue for all United States stocks is 100.0% higher than that of Assure Holdings. As for Novo Integrated we see revenue of 11.74 M, which is much higher than that of the Health Care
NVOS
11.7 M
IONM255,0002.13
Sector0.00.0
NVOS11.74 Million97.87
"Never put all your eggs in one basket," is a well-known investment adage that rings true when comparing Novo Integrated Sciences and Assure Holdings Corp. Despite Assure's struggling financials, with a net asset of $7.51M and an EBITDA loss of $16.8M, the company's current ratio of 6.62X indicates a strong short-term liquidity position. However, the high probability of bankruptcy at 96% is a significant red flag for potential investors. The company's stock is also highly volatile, with a beta of 1.7, which means it's more reactive to market changes than the average stock. On the brighter side, the Wall Street target price for Assure is $4, significantly higher than its current typical day price of $0.47, suggesting potential upside for risk-tolerant investors..

Our perspective of the recent Assure Holdings roll up

Our recent analysis of Assure Holdings Corp reveals a notable decrease in standard deviation to 11.11, suggesting a potential decline in volatility and a possible period of stability for the stock. This could be a positive sign for investors, potentially reducing the risk of sudden price fluctuations. However, we always advise a balanced portfolio approach and thorough due diligence before making any investment decisions. Assure Holdings Corp, a potential penny stock, has shown significant volatility over the selected time horizon. While it may be a viable investment, many penny stocks are speculative and subject to artificial price hype. We urge investors to be aware of signals such as email spam, unreported promotions, sudden news releases, and volume upswings. Before investing in high volatility instruments, penny stocks, or microcap equities, check the biographies and work history of current and past company officers.
While it's possible to profit from Assure Holdings Corp with perfect timing, remember that artificially hyped penny stocks often cannot maintain their increased share price for long. The best way to increase shareholder value is through solid performance backed by strong fundamentals.In conclusion, Assure Holdings Corp's strong performance today is an encouraging sign for potential investors. The company's fiscal year end in December could bring further advancements, given the analyst overall consensus of a 'Strong Buy'. The highest estimated target price stands at $4.44, with a possible upside price of a staggering $11.43. However, investors should also consider the possible downside price of $0.0047. Despite the current valuation hype value of $0.45, the real value is only $0.37, indicating a potential overvaluation. Therefore, while Assure Holdings Corp shows promise, investors should proceed with caution and conduct thorough research before making any investment decisions..

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Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Assure Holdings Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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