Critical Survey: AngioDynamics (NASDAQ:ANGO) and Spectral AI (NASDAQ:MDAI)

AngioDynamics (NASDAQ:ANGO) and Spectral AI (NASDAQ:MDAI) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AngioDynamics and Spectral AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngioDynamics	1	0	3	1	2.80
Spectral AI	1	0	2	0	2.33

AngioDynamics presently has a consensus target price of $19.33, suggesting a potential upside of 81.86%. Spectral AI has a consensus target price of $3.25, suggesting a potential upside of 95.31%. Given Spectral AI’s higher probable upside, analysts clearly believe Spectral AI is more favorable than AngioDynamics.

Profitability

This table compares AngioDynamics and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AngioDynamics	-9.02%	-2.28%	-1.50%
Spectral AI	-70.64%	N/A	-27.57%

Volatility & Risk

AngioDynamics has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Spectral AI has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares AngioDynamics and Spectral AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AngioDynamics	$292.50 million	1.50	-$33.99 million	($0.67)	-15.87
Spectral AI	$29.58 million	1.73	-$15.31 million	($0.74)	-2.25

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

Institutional and Insider Ownership

89.4% of AngioDynamics shares are held by institutional investors. Comparatively, 67.1% of Spectral AI shares are held by institutional investors. 6.0% of AngioDynamics shares are held by insiders. Comparatively, 30.7% of Spectral AI 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.

Summary

AngioDynamics beats Spectral AI on 8 of the 15 factors compared between the two stocks.

About AngioDynamics

AngioDynamics, Inc., a medical technology company, engages in the design, manufacture, and sale of medical, surgical, and diagnostic devices for the use in treating peripheral vascular disease, and oncology and surgical settings in the United States and internationally. The company offers Auryon Atherectomy system that is designed to deliver an optimized wavelength, pulse width, and amplitude to remove lesions while preserving vessel wall endothelium. Its thrombus management portfolio includes AlphaVac mechanical thrombectomy system, an emergent mechanical aspiration device that eliminates the need for perfusionist support; thrombolytic catheters that are used to deliver thrombolytic agents, which are drugs to dissolve blood clots in hemodialysis access grafts, arteries, veins, and surgical bypass grafts; and AngioVac venous drainage cannula and extracorporeal circuit, indicated for extracorporeal circulatory support for periods of up to six hours including off-the-shelf pump, filter, and reinfusion cannula, to facilitate venous drainage as part of an extracorporeal bypass procedure. The company also offers NanoKnife IRE Ablation System, an alternative to traditional thermal ablation for the surgical ablation of soft tissue; and peripheral products, which includes angiographic catheters, and diagnostic and interventional guidewires, percutaneous drainage catheters, and coaxial micro-introducer kits used during peripheral diagnostic and interventional procedures. In addition, it provides drainage catheters for multi-purpose/general, nephrostomy, and biliary drainage; micro-Access kits provides interventional physicians a smaller introducer system for minimally invasive procedures; VenaCure EVLT system that are used in endovascular laser procedures to treat superficial venous disease; and Solero MTA System includes solero microwave generator and the specially designed solero MW applicators. The company was founded in 1988 and is headquartered in Latham, New York.

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.