Contrasting NexGel (NASDAQ:NXGL) & Olympus (OTCMKTS:OCPNY)

Olympus (OTCMKTS:OCPNY) and NexGel (NASDAQ:NXGL) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

0.0% of Olympus shares are owned by institutional investors. Comparatively, 2.2% of NexGel shares are owned by institutional investors. 19.8% of NexGel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Olympus and NexGel”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95
NexGel	$12.07 million	0.17	-$3.00 million	($14.20)	-0.30

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Olympus and NexGel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olympus	0	0	1	0	3.00
NexGel	1	2	0	0	1.67

NexGel has a consensus target price of $40.00, suggesting a potential upside of 838.97%. Given NexGel’s higher probable upside, analysts plainly believe NexGel is more favorable than Olympus.

Profitability

This table compares Olympus and NexGel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olympus	13.80%	24.30%	9.30%
NexGel	-51.26%	-121.18%	-41.15%

Risk & Volatility

Olympus has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, NexGel has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Summary

Olympus beats NexGel on 10 of the 14 factors compared between the two stocks.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.

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.