Reviewing NeurAxis (NASDAQ:NRXS) and Outset Medical (NASDAQ:OM)

NeurAxis (NASDAQ:NRXS) and Outset Medical (NASDAQ:OM) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for NeurAxis and Outset Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeurAxis	0	0	1	0	3.00
Outset Medical	1	2	3	0	2.33

Outset Medical has a consensus price target of $5.42, indicating a potential upside of 38.71%. Given Outset Medical’s higher probable upside, analysts plainly believe Outset Medical is more favorable than NeurAxis.

Valuation & Earnings

This table compares NeurAxis and Outset Medical’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeurAxis	$2.46 million	7.80	-$14.63 million	($4.59)	-0.63
Outset Medical	$130.38 million	1.55	-$172.80 million	($3.38)	-1.16

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

Institutional & Insider Ownership

11.8% of NeurAxis shares are owned by institutional investors. 3.5% of Outset Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NeurAxis and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeurAxis	-594.55%	N/A	-899.27%
Outset Medical	-134.93%	-120.67%	-51.09%

Summary

Outset Medical beats NeurAxis on 7 of the 13 factors compared between the two stocks.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.