Semler Scientific (OTCMKTS:SMLR) and NxStage Medical (NASDAQ:NXTM) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Semler Scientific and NxStage Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semler Scientific 25.90% 191.41% 84.63%
NxStage Medical -1.29% -2.50% -1.60%

Valuation and Earnings

This table compares Semler Scientific and NxStage Medical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semler Scientific $21.49 million 13.22 $5.01 million $0.66 66.65
NxStage Medical $393.94 million 5.08 -$14.47 million ($0.22) -136.36

Semler Scientific has higher earnings, but lower revenue than NxStage Medical. NxStage Medical is trading at a lower price-to-earnings ratio than Semler Scientific, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Semler Scientific has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, NxStage Medical has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Semler Scientific and NxStage Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semler Scientific 0 0 2 0 3.00
NxStage Medical 0 0 0 0 N/A

Semler Scientific presently has a consensus target price of $44.00, indicating a potential upside of 0.02%. Given Semler Scientific’s higher probable upside, analysts clearly believe Semler Scientific is more favorable than NxStage Medical.

Institutional & Insider Ownership

12.0% of Semler Scientific shares are owned by institutional investors. Comparatively, 80.3% of NxStage Medical shares are owned by institutional investors. 13.9% of Semler Scientific shares are owned by insiders. Comparatively, 4.9% of NxStage Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Semler Scientific beats NxStage Medical on 11 of the 13 factors compared between the two stocks.

Semler Scientific Company Profile

Semler Scientific, Inc. develops, manufactures, and markets proprietary products that assist healthcare providers to evaluate and treat patients with chronic diseases in the United States. Its products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient's vascular condition. The company's products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, and family practitioners, as well as healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups. It offers its products through salespersons and distributors. Semler Scientific, Inc. was founded in 2007 and is headquartered in San Jose, California.

NxStage Medical Company Profile

NxStage Medical, Inc., a medical technology company, develops, manufactures, and markets products and services for patients suffering from chronic or acute kidney failure. Its primary product includes the System One, a portable hemodialysis system, which is used primarily for home hemodialysis and a range of dialysis therapies to deliver in the home setting. The company operates through three segments: System One, In-Center, and Services. The System One segment sells and rents the NxStage System One and PureFlow SL dialysate preparation equipment, as well as sells disposable products in the home and critical care market for the treatment of end-stage renal disease (ESRD) patients in the home or a home-like setting and in the critical care market for the treatment of hospital-based patients with acute kidney failure or fluid overload. The In-Center segment sells blood tubing sets and needles for hemodialysis primarily for the treatment of ESRD patients at dialysis centers, and needles for apheresis. The Services segment offers dialysis services to patients at NxStage Kidney Care dialysis centers. As of February 3, 2018, it had 21 centers. NxStage Medical, Inc. markets its products through direct sales to dialysis clinics and hospitals in the United States, the United Kingdom, and Canada, as well as through distributors in Europe and internationally. The company was formerly known as QB Medical, Inc. and changed its name to NxStage Medical, Inc. NxStage Medical, Inc. was founded in 1998 and is headquartered in Lawrence, Massachusetts.

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