Masimo (NASDAQ:MASI – Get Free Report) and Spectral AI (NASDAQ:MDAI – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Risk and Volatility
Masimo has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Spectral AI has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Valuation & Earnings
This table compares Masimo and Spectral AI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Masimo | $1.53 billion | 6.12 | -$151.50 million | ($10.54) | -16.94 |
| Spectral AI | $19.65 million | 3.77 | -$7.57 million | ($0.31) | -7.52 |
Spectral AI has lower revenue, but higher earnings than Masimo. Masimo is trading at a lower price-to-earnings ratio than Spectral AI, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Masimo and Spectral AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Masimo | 0 | 9 | 0 | 0 | 2.00 |
| Spectral AI | 1 | 0 | 1 | 0 | 2.00 |
Masimo currently has a consensus target price of $180.40, suggesting a potential upside of 1.06%. Spectral AI has a consensus target price of $3.00, suggesting a potential upside of 28.76%. Given Spectral AI’s higher possible upside, analysts plainly believe Spectral AI is more favorable than Masimo.
Profitability
This table compares Masimo and Spectral AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Masimo | 4.90% | 31.33% | 13.93% |
| Spectral AI | -41.11% | N/A | -35.64% |
Insider and Institutional Ownership
86.0% of Masimo shares are owned by institutional investors. Comparatively, 67.1% of Spectral AI shares are owned by institutional investors. 16.9% of Masimo shares are owned by company insiders. Comparatively, 30.7% of Spectral AI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Spectral AI beats Masimo on 7 of the 13 factors compared between the two stocks.
About Masimo
Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.
About Spectral AI
Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.
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