Reviewing Nutex Health (NASDAQ:NUTX) and Research Solutions (NASDAQ:RSSS)

Nutex Health (NASDAQ:NUTX) and Research Solutions (NASDAQ:RSSS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Volatility & Risk

Nutex Health has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Institutional and Insider Ownership

5.3% of Nutex Health shares are owned by institutional investors. Comparatively, 33.6% of Research Solutions shares are owned by institutional investors. 38.5% of Nutex Health shares are owned by insiders. Comparatively, 12.9% of Research Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nutex Health and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutex Health	-14.09%	-51.27%	-9.89%
Research Solutions	-8.41%	-6.59%	-1.96%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nutex Health and Research Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutex Health	0	0	2	0	3.00
Research Solutions	0	0	2	0	3.00

Nutex Health currently has a consensus price target of $67.50, suggesting a potential downside of 5.42%. Research Solutions has a consensus price target of $5.50, suggesting a potential upside of 119.12%. Given Research Solutions’ higher probable upside, analysts clearly believe Research Solutions is more favorable than Nutex Health.

Valuation & Earnings

This table compares Nutex Health and Research Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutex Health	$292.00 million	1.33	-$45.79 million	($9.39)	-7.60
Research Solutions	$48.21 million	1.70	-$3.79 million	($0.15)	-16.73

Research Solutions has lower revenue, but higher earnings than Nutex Health. Research Solutions is trading at a lower price-to-earnings ratio than Nutex Health, indicating that it is currently the more affordable of the two stocks.

Summary

Research Solutions beats Nutex Health on 9 of the 12 factors compared between the two stocks.

About Nutex Health

Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.