NexGel (NASDAQ:NXGL – Get Free Report) and iRadimed (NASDAQ:IRMD – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
2.2% of NexGel shares are held by institutional investors. Comparatively, 92.3% of iRadimed shares are held by institutional investors. 23.4% of NexGel shares are held by insiders. Comparatively, 34.6% of iRadimed shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for NexGel and iRadimed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexGel | 1 | 0 | 1 | 0 | 2.00 |
| iRadimed | 0 | 2 | 2 | 1 | 2.80 |
Earnings and Valuation
This table compares NexGel and iRadimed”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexGel | $11.42 million | 0.40 | -$3.00 million | ($0.40) | -1.24 |
| iRadimed | $83.81 million | 13.30 | $22.48 million | $1.79 | 48.67 |
iRadimed has higher revenue and earnings than NexGel. NexGel is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NexGel has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, iRadimed has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Profitability
This table compares NexGel and iRadimed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexGel | -28.54% | -64.29% | -29.64% |
| iRadimed | 26.70% | 23.45% | 20.36% |
Summary
iRadimed beats NexGel on 14 of the 15 factors compared between the two stocks.
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 iRadimed
IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.
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