Tenon Medical (NASDAQ:TNON) & NexGel (NASDAQ:NXGL) Financial Survey

NexGel (NASDAQ:NXGL) and Tenon Medical (NASDAQ:TNON) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

NexGel has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares NexGel and Tenon Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexGel	-24.69%	-47.35%	-24.67%
Tenon Medical	-396.26%	-409.04%	-114.60%

Earnings & Valuation

This table compares NexGel and Tenon Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexGel	$8.69 million	1.56	-$3.28 million	($0.37)	-4.51
Tenon Medical	$3.28 million	2.82	-$13.67 million	($1.77)	-0.61

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

Analyst Recommendations

This is a summary of recent recommendations for NexGel and Tenon Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexGel	1	0	0	0	1.00
Tenon Medical	1	0	2	0	2.33

Tenon Medical has a consensus price target of $3.00, indicating a potential upside of 179.07%. Given Tenon Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Tenon Medical is more favorable than NexGel.

Insider and Institutional Ownership

2.2% of NexGel shares are held by institutional investors. Comparatively, 22.7% of Tenon Medical shares are held by institutional investors. 20.6% of NexGel shares are held by insiders. Comparatively, 0.3% of Tenon Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.