Comparing Gadsden Properties (OTCMKTS:GADS) & Outset Medical (NASDAQ:OM)

Gadsden Properties (OTCMKTS:GADS) and Outset Medical (NASDAQ:OM) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility and Risk

Gadsden Properties has a beta of -5.57, suggesting that its share price is 657% less volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gadsden Properties and Outset Medical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gadsden Properties	N/A	N/A	N/A	N/A	N/A
Outset Medical	$130.38 million	0.39	-$172.80 million	($2.76)	-0.35

Gadsden Properties has higher earnings, but lower revenue than Outset Medical.

Analyst Recommendations

This is a summary of recent ratings for Gadsden Properties and Outset Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gadsden Properties	0	0	0	0	0.00
Outset Medical	0	1	3	0	2.75

Outset Medical has a consensus target price of $4.50, suggesting a potential upside of 370.22%. Given Outset Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Outset Medical is more favorable than Gadsden Properties.

Profitability

This table compares Gadsden Properties and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gadsden Properties	N/A	N/A	N/A
Outset Medical	-122.84%	-164.92%	-43.27%

Summary

Outset Medical beats Gadsden Properties on 5 of the 8 factors compared between the two stocks.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.