Comparing PROCEPT BioRobotics (NASDAQ:PRCT) & Spectral Medical (OTCMKTS:EDTXF)

PROCEPT BioRobotics (NASDAQ:PRCT) and Spectral Medical (OTCMKTS:EDTXF) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PROCEPT BioRobotics and Spectral Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	0	0	7	0	3.00
Spectral Medical	0	0	0	0	N/A

PROCEPT BioRobotics currently has a consensus price target of $61.20, suggesting a potential downside of 8.74%. Given PROCEPT BioRobotics’ higher possible upside, equities analysts clearly believe PROCEPT BioRobotics is more favorable than Spectral Medical.

Volatility and Risk

PROCEPT BioRobotics has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Spectral Medical has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares PROCEPT BioRobotics and Spectral Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-66.12%	-41.35%	-27.92%
Spectral Medical	-1,033.07%	N/A	-263.26%

Insider & Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. 17.4% of PROCEPT BioRobotics shares are held by company insiders. Comparatively, 1.5% of Spectral Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares PROCEPT BioRobotics and Spectral Medical’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$136.19 million	25.32	-$105.90 million	($2.12)	-31.63
Spectral Medical	$1.18 million	85.05	-$11.60 million	($0.05)	-7.20

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

Summary

PROCEPT BioRobotics beats Spectral Medical on 8 of the 13 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About Spectral Medical

Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.