Modular Medical (NASDAQ:MODD) and ClearPoint Neuro (NASDAQ:CLPT) Head to Head Analysis

ClearPoint Neuro (NASDAQ:CLPT) and Modular Medical (NASDAQ:MODD) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for ClearPoint Neuro and Modular Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ClearPoint Neuro	0	0	3	0	3.00
Modular Medical	0	0	2	0	3.00

ClearPoint Neuro presently has a consensus target price of $12.00, suggesting a potential upside of 121.40%. Modular Medical has a consensus target price of $4.25, suggesting a potential upside of 174.19%. Given Modular Medical’s higher probable upside, analysts clearly believe Modular Medical is more favorable than ClearPoint Neuro.

Insider and Institutional Ownership

30.1% of ClearPoint Neuro shares are owned by institutional investors. Comparatively, 27.5% of Modular Medical shares are owned by institutional investors. 6.1% of ClearPoint Neuro shares are owned by insiders. Comparatively, 32.3% of Modular Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

ClearPoint Neuro has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares ClearPoint Neuro and Modular Medical’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ClearPoint Neuro	$23.95 million	6.13	-$22.09 million	($0.91)	-5.96
Modular Medical	N/A	N/A	-$13.88 million	($0.97)	-1.60

Modular Medical has lower revenue, but higher earnings than ClearPoint Neuro. ClearPoint Neuro is trading at a lower price-to-earnings ratio than Modular Medical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ClearPoint Neuro and Modular Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ClearPoint Neuro	-92.21%	-83.94%	-47.92%
Modular Medical	N/A	-235.93%	-180.37%

Summary

ClearPoint Neuro beats Modular Medical on 7 of the 11 factors compared between the two stocks.

About ClearPoint Neuro

ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. It develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. The company offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. It has license and collaboration agreement with Clinical Laserthermia Systems AB; license and research agreement with Koninklijke Philips N.V., UCB Biopharma SRL, and University of California and San Francisco; and development and license agreement with NE Scientific, LLC. The company was formerly known as MRI Interventions, Inc. and changed its name to ClearPoint Neuro, Inc. in February 2020. ClearPoint Neuro, Inc. was incorporated in 1998 and is headquartered in Solana Beach, California.

About Modular Medical

Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.