Spectral AI (NASDAQ:MDAI) and Masimo (NASDAQ:MASI) Financial Contrast

Masimo (NASDAQ:MASI) and Spectral AI (NASDAQ:MDAI) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Masimo and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Masimo	4.90%	31.33%	13.93%
Spectral AI	-85.58%	N/A	-73.14%

Volatility & Risk

Masimo has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Spectral AI has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

86.0% of Masimo shares are held by institutional investors. Comparatively, 67.1% of Spectral AI shares are held by institutional investors. 9.7% of Masimo shares are held by insiders. Comparatively, 30.7% of Spectral AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Masimo and Spectral AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masimo	0	9	0	0	2.00
Spectral AI	1	0	1	0	2.00

Masimo currently has a consensus target price of $180.40, indicating a potential upside of 1.12%. Spectral AI has a consensus target price of $3.00, indicating a potential upside of 47.06%. Given Spectral AI’s higher probable upside, analysts plainly believe Spectral AI is more favorable than Masimo.

Earnings & Valuation

This table compares Masimo and Spectral AI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Masimo	$1.53 billion	6.12	-$151.50 million	($10.54)	-16.93
Spectral AI	$19.65 million	3.30	-$7.57 million	($0.31)	-6.58

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

Summary

Spectral AI beats Masimo on 7 of the 13 factors compared between the two stocks.

About Masimo

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.