Semler Scientific (NASDAQ:SMLR – Get Free Report) and NexGel (NASDAQ:NXGL – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Valuation and Earnings
This table compares Semler Scientific and NexGel”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Semler Scientific | $56.29 million | 5.62 | $40.90 million | $2.78 | 7.51 |
| NexGel | $8.69 million | 1.48 | -$3.28 million | ($0.37) | -4.27 |
Profitability
This table compares Semler Scientific and NexGel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Semler Scientific | 130.80% | 34.21% | 25.58% |
| NexGel | -24.69% | -47.35% | -24.67% |
Risk and Volatility
Semler Scientific has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, NexGel has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Institutional & Insider Ownership
49.4% of Semler Scientific shares are held by institutional investors. Comparatively, 2.2% of NexGel shares are held by institutional investors. 16.4% of Semler Scientific shares are held by company insiders. Comparatively, 20.6% of NexGel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Semler Scientific and NexGel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Semler Scientific | 1 | 0 | 4 | 0 | 2.60 |
| NexGel | 1 | 0 | 0 | 0 | 1.00 |
Semler Scientific currently has a consensus price target of $74.25, suggesting a potential upside of 255.60%. Given Semler Scientific’s stronger consensus rating and higher probable upside, analysts plainly believe Semler Scientific is more favorable than NexGel.
Summary
Semler Scientific beats NexGel on 13 of the 14 factors compared between the two stocks.
About Semler Scientific
Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.
About NexGel
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
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