Pulmonx (NASDAQ:LUNG) and Decision Diagnostics (OTCMKTS:DECN) Financial Analysis

Pulmonx (NASDAQ:LUNG) and Decision Diagnostics (OTCMKTS:DECN) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Profitability

This table compares Pulmonx and Decision Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-61.91%	-77.58%	-37.90%
Decision Diagnostics	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Pulmonx and Decision Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	4	5	0	2.40
Decision Diagnostics	0	0	0	0	0.00

Pulmonx currently has a consensus target price of $6.81, suggesting a potential upside of 206.63%. Given Pulmonx’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pulmonx is more favorable than Decision Diagnostics.

Insider and Institutional Ownership

91.0% of Pulmonx shares are held by institutional investors. 6.8% of Pulmonx shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Pulmonx and Decision Diagnostics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$91.66 million	1.00	-$56.39 million	($1.41)	-1.57
Decision Diagnostics	N/A	N/A	N/A	N/A	N/A

Decision Diagnostics has lower revenue, but higher earnings than Pulmonx.

Risk & Volatility

Pulmonx has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Decision Diagnostics has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Summary

Pulmonx beats Decision Diagnostics on 6 of the 9 factors compared between the two stocks.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

About Decision Diagnostics

Decision Diagnostics Corp. develops smart phone based electronic medical record (EMR) technologies. The company offers prescription and non-prescription diagnostics; home testing products for the chronically ill; fulfillment services to direct to patient diabetes programs; and cell phone centric e-health products and technologies development services. It manufactures and distributes GenUltimate! glucose test strips, a Class II medical device for at-home use for the measurement of glucose; PetSure! glucose test strip for the glucose testing of dogs and cats designed to work with the Zoetis AlphaTrak and AlphaTrak II glucometers, a legacy meter; GenUltimate! 4Pets Glucose system, a proprietary glucose measuring system, including GenUltimate! 4Pets test strip and Avantage meter, for the testing of dogs, cats, and horses; and GenUltimate! Sure and GenUltimate! Precis test strips. In addition, it engages in the acquisition and holding of intellectual property including patents and trademarks and specialty manufacturing equipment. Further, the company also provides MD@Hand, an inpatient/outpatient management suite; Practice Probe, a data mining utility used to extract information from the physician's practice management system; and ResidenceWare, a residential management system that facilitates the relay of information from commercial and residential real estate management companies to occupying tenants using networking software systems and applications. Its EMR technologies are used by physicians at the point of care. The company was formerly known as InstaCare Corp. and changed its name to Decision Diagnostics Corp. in November 2011. Decision Diagnostics Corp. was founded in 2000 and is based in Westlake Village, California.