Head-To-Head Contrast: NexGel (NASDAQ:NXGL) versus iRadimed (NASDAQ:IRMD)

iRadimed (NASDAQ:IRMD) and NexGel (NASDAQ:NXGL) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for iRadimed and NexGel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRadimed	0	2	2	1	2.80
NexGel	1	0	1	0	2.00

iRadimed presently has a consensus target price of $120.00, indicating a potential upside of 36.33%. NexGel has a consensus target price of $2.00, indicating a potential upside of 432.62%. Given NexGel’s higher probable upside, analysts plainly believe NexGel is more favorable than iRadimed.

Volatility and Risk

iRadimed has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, NexGel has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Valuation and Earnings

This table compares iRadimed and NexGel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRadimed	$83.81 million	13.43	$22.48 million	$1.79	49.17
NexGel	$11.42 million	0.30	-$3.00 million	($0.40)	-0.94

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iRadimed	26.70%	23.45%	20.36%
NexGel	-28.54%	-64.29%	-29.64%

Insider and Institutional Ownership

92.3% of iRadimed shares are owned by institutional investors. Comparatively, 2.2% of NexGel shares are owned by institutional investors. 34.6% of iRadimed shares are owned by company insiders. Comparatively, 23.4% of NexGel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

iRadimed beats NexGel on 14 of the 15 factors compared between the two stocks.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.

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.