Apyx Medical (NASDAQ:APYX – Get Free Report) and NEXGEL (NASDAQ:NXGL – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Risk and Volatility
Apyx Medical has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.
Insider and Institutional Ownership
55.3% of Apyx Medical shares are held by institutional investors. Comparatively, 2.2% of NEXGEL shares are held by institutional investors. 13.1% of Apyx Medical shares are held by insiders. Comparatively, 27.2% of NEXGEL shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Apyx Medical | 0 | 0 | 2 | 0 | 3.00 |
| NEXGEL | 0 | 0 | 0 | 0 | N/A |
Apyx Medical currently has a consensus target price of $6.17, indicating a potential upside of 331.24%. Given Apyx Medical’s higher possible upside, equities analysts plainly believe Apyx Medical is more favorable than NEXGEL.
Valuation and Earnings
This table compares Apyx Medical and NEXGEL’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Apyx Medical | $52.35 million | 0.95 | -$18.71 million | ($0.54) | -2.65 |
| NEXGEL | $4.09 million | 3.37 | -$3.16 million | ($0.56) | -3.95 |
NEXGEL has lower revenue, but higher earnings than Apyx Medical. NEXGEL is trading at a lower price-to-earnings ratio than Apyx Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Apyx Medical and NEXGEL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Apyx Medical | -35.75% | -54.90% | -28.41% |
| NEXGEL | -77.19% | -49.49% | -30.50% |
Summary
Apyx Medical beats NEXGEL on 8 of the 12 factors compared between the two stocks.
About Apyx Medical
Apyx Medical Corporation, an energy technology company, develops, manufactures, and sells medical devices in the cosmetic and surgical markets in the United States and internationally. It operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). The company offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. Its Helium Plasma Technology products are marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market. It also develops and manufactures hand pieces for open and laparoscopic procedures; and OEM generators and related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.
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.
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