Contrasting Spectral AI (NASDAQ:MDAI) and Monogram Orthopaedics (NASDAQ:MGRM)

Spectral AI (NASDAQ:MDAI) and Monogram Orthopaedics (NASDAQ:MGRM) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 0.5% of Monogram Orthopaedics shares are held by institutional investors. 30.7% of Spectral AI shares are held by company insiders. Comparatively, 28.1% of Monogram Orthopaedics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Spectral AI and Monogram Orthopaedics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$27.55 million	2.16	-$15.31 million	($0.69)	-3.23
Monogram Orthopaedics	$370,000.00	670.94	-$16.33 million	($0.50)	-12.22

Spectral AI has higher revenue and earnings than Monogram Orthopaedics. Monogram Orthopaedics is trading at a lower price-to-earnings ratio than Spectral AI, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Spectral AI and Monogram Orthopaedics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	0	2.00
Monogram Orthopaedics	1	0	1	1	2.67

Spectral AI presently has a consensus target price of $3.50, suggesting a potential upside of 56.95%. Monogram Orthopaedics has a consensus target price of $5.40, suggesting a potential downside of 11.62%. Given Spectral AI’s higher probable upside, research analysts plainly believe Spectral AI is more favorable than Monogram Orthopaedics.

Profitability

This table compares Spectral AI and Monogram Orthopaedics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-51.97%	N/A	-8.69%
Monogram Orthopaedics	N/A	-126.82%	-96.87%

Risk & Volatility

Spectral AI has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Monogram Orthopaedics has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Spectral AI beats Monogram Orthopaedics on 9 of the 14 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About Monogram Orthopaedics

Monogram Orthopaedics, Inc. focuses on developing a product solution architecture to enable patient-optimized orthopaedic implants. The company intends to produce and market robotic surgical equipment and related software, orthopedic implants, tissue ablation tools, navigation consumables, and other miscellaneous instrumentation for use in reconstructive joint replacement procedures. Its robot prototype executes optimized paths for high-precision insertion of optimized implants in synthetic bone specimens. The company was formerly known as Monogram Arthroplasty Inc. and changed its name to Monogram Orthopaedics, Inc. in March 2017. The company was founded in 2015 and is headquartered in Austin, Texas.