Reviewing Nihon Kohden (OTCMKTS:NHNKY) & Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and Nihon Kohden (OTCMKTS:NHNKY) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Earnings and Valuation

This table compares Hyperfine and Nihon Kohden”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$12.89 million	8.37	-$40.72 million	($0.52)	-2.13
Nihon Kohden	$1.48 billion	1.16	$93.05 million	$0.73	13.75

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hyperfine and Nihon Kohden, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	1	1	2	0	2.25
Nihon Kohden	0	0	0	0	0.00

Hyperfine currently has a consensus target price of $1.28, suggesting a potential upside of 15.62%. Given Hyperfine’s stronger consensus rating and higher possible upside, research analysts clearly believe Hyperfine is more favorable than Nihon Kohden.

Profitability

This table compares Hyperfine and Nihon Kohden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-378.17%	-97.95%	-75.87%
Nihon Kohden	5.77%	6.74%	4.96%

Risk and Volatility

Hyperfine has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Nihon Kohden has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

15.0% of Hyperfine shares are owned by institutional investors. Comparatively, 0.1% of Nihon Kohden shares are owned by institutional investors. 31.0% of Hyperfine shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.