Contrasting Zynex (NASDAQ:ZYXI) & Senestech (NASDAQ:SNES)

Senestech (NASDAQ:SNES) and Zynex (NASDAQ:ZYXI) are both small-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Senestech and Zynex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senestech	1	1	0	1	2.33
Zynex	1	0	0	0	1.00

Volatility and Risk

Senestech has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Senestech and Zynex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Senestech	-304.22%	-67.60%	-49.21%
Zynex	-68.35%	-804.30%	-36.67%

Institutional and Insider Ownership

5.2% of Senestech shares are held by institutional investors. Comparatively, 29.7% of Zynex shares are held by institutional investors. 2.2% of Senestech shares are held by insiders. Comparatively, 49.3% of Zynex shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Senestech and Zynex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senestech	$2.22 million	3.99	-$6.38 million	($1.89)	-0.88
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05

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

Summary

Zynex beats Senestech on 8 of the 13 factors compared between the two stocks.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.