Comparing Apyx Medical (NASDAQ:APYX) & NEXGEL (NASDAQ:NXGL)

NEXGEL (NASDAQ:NXGL) and Apyx Medical (NASDAQ:APYX) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for NEXGEL and Apyx Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXGEL	0	0	0	0	N/A
Apyx Medical	0	0	2	0	3.00

Apyx Medical has a consensus target price of $6.17, indicating a potential upside of 340.48%. Given Apyx Medical’s higher possible upside, analysts plainly believe Apyx Medical is more favorable than NEXGEL.

Profitability

This table compares NEXGEL and Apyx Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NEXGEL	-77.19%	-49.49%	-30.50%
Apyx Medical	-35.75%	-54.90%	-28.41%

Volatility & Risk

NEXGEL has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Apyx Medical has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

2.2% of NEXGEL shares are owned by institutional investors. Comparatively, 55.3% of Apyx Medical shares are owned by institutional investors. 27.2% of NEXGEL shares are owned by company insiders. Comparatively, 13.1% of Apyx Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NEXGEL and Apyx Medical’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXGEL	$4.09 million	3.26	-$3.16 million	($0.56)	-3.82
Apyx Medical	$52.35 million	0.93	-$18.71 million	($0.54)	-2.59

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

Summary

Apyx Medical beats NEXGEL on 9 of the 13 factors compared between the two stocks.

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.

About Apyx Medical

Apyx Medical Corporation, an energy technology company, develops, manufactures, and sells medical devices in the cosmetic and surgical markets in the United States and internationally. It operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). The company offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. Its Helium Plasma Technology products are marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market. It also develops and manufactures hand pieces for open and laparoscopic procedures; and OEM generators and related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.