Nephros (NASDAQ:NEPH) & iRadimed (NASDAQ:IRMD) Critical Comparison

Nephros (NASDAQ:NEPH) and iRadimed (NASDAQ:IRMD) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

Nephros has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, iRadimed has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Nephros and iRadimed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nephros	8.38%	10.60%	8.05%
iRadimed	26.70%	23.45%	20.36%

Analyst Ratings

This is a summary of current recommendations for Nephros and iRadimed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	3	1	0	2.25
iRadimed	0	3	2	1	2.67

Nephros currently has a consensus target price of $4.00, indicating a potential upside of 12.68%. iRadimed has a consensus target price of $120.00, indicating a potential upside of 34.30%. Given iRadimed’s stronger consensus rating and higher possible upside, analysts clearly believe iRadimed is more favorable than Nephros.

Valuation & Earnings

This table compares Nephros and iRadimed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$20.72 million	1.86	$1.19 million	$0.16	22.19
iRadimed	$86.34 million	13.23	$22.48 million	$1.79	49.92

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

Insider and Institutional Ownership

41.1% of Nephros shares are owned by institutional investors. Comparatively, 92.3% of iRadimed shares are owned by institutional investors. 6.7% of Nephros shares are owned by company insiders. Comparatively, 34.6% of iRadimed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

iRadimed beats Nephros on 14 of the 15 factors compared between the two stocks.

About Nephros

Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.

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.