Venus Concept (NASDAQ:VERO) and Vapotherm (NYSE:VAPO) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

27.7% of Venus Concept shares are owned by institutional investors. Comparatively, 55.3% of Vapotherm shares are owned by institutional investors. 37.8% of Venus Concept shares are owned by insiders. Comparatively, 34.4% of Vapotherm shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Venus Concept and Vapotherm’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Venus Concept $21.96 million 9.88 -$28.73 million ($12.89) -0.57
Vapotherm $42.38 million 5.22 -$42.47 million ($13.83) -0.76

Venus Concept has higher earnings, but lower revenue than Vapotherm. Vapotherm is trading at a lower price-to-earnings ratio than Venus Concept, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Venus Concept and Vapotherm, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Venus Concept 0 0 2 0 3.00
Vapotherm 0 0 1 0 3.00

Venus Concept currently has a consensus target price of $10.00, indicating a potential upside of 36.80%. Vapotherm has a consensus target price of $27.00, indicating a potential upside of 157.14%. Given Vapotherm’s higher possible upside, analysts clearly believe Vapotherm is more favorable than Venus Concept.

Profitability

This table compares Venus Concept and Vapotherm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Venus Concept -77.97% N/A -122.05%
Vapotherm -110.06% -107.95% -50.80%

Volatility and Risk

Venus Concept has a beta of 4.14, indicating that its stock price is 314% more volatile than the S&P 500. Comparatively, Vapotherm has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Summary

Venus Concept beats Vapotherm on 9 of the 13 factors compared between the two stocks.

Venus Concept Company Profile

Venus Concept Inc. operates as a medical aesthetic technology company worldwide. Its product portfolio includes aesthetic device platforms, including Venus Versa, a multi-treatment platform to address the aesthetic procedures without surgery or downtime; Venus Legacy, an advanced device that resolves challenging face and body aesthetic needs; Venus Velocity, a diode laser for hair removal; Venus Fiore, which addresses internal vaginal health restoration, labia skin tightening, and mons pubis reduction; Venus Viva, a customizable skin resurfacing device that allows operator control of ablation and coagulation for resolving the appearance of mild to severe skin damage for various skin types; Venus Freeze Plus, an anti-aging system for non-invasive skin tightening; and Venus Bliss, a solution for the fat reduction category. The company also offers NeoGraft, an automated hair restoration system that facilitates the harvesting of follicles during a FUE process; and ARTAS and ARTAS iX robotic hair restoration systems, which harvest follicular units directly from the scalp and create recipient implant sites using proprietary algorithms. Venus Concept Inc. is headquartered in Toronto, Canada.

Vapotherm Company Profile

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary Hi-VNI technology products used to treat patients of various ages suffering from respiratory distress worldwide. The company offers precision flow systems, such as Precision Flow Hi-VNI, Precision Flow Plus, Precision Flow Classic, and Precision Flow Heliox that use Hi-VNI technology to deliver heated, humidified, and oxygenated air at a high velocity to patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit and Q50 compressor; and disposable products comprising single-use disposables and nasal interfaces. The company sells its products to hospitals. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.

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