Head-To-Head Analysis: Nexeon Medsystems (OTCMKTS:NXNN) vs. Electromed (NYSE:ELMD)

Nexeon Medsystems (OTCMKTS:NXNN) and Electromed (NYSE:ELMD) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nexeon Medsystems and Electromed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexeon Medsystems	0	0	0	0	0.00
Electromed	0	0	2	1	3.33

Electromed has a consensus target price of $36.25, indicating a potential upside of 53.28%. Given Electromed’s stronger consensus rating and higher probable upside, analysts plainly believe Electromed is more favorable than Nexeon Medsystems.

Earnings & Valuation

This table compares Nexeon Medsystems and Electromed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexeon Medsystems	N/A	N/A	N/A	N/A	N/A
Electromed	$64.00 million	3.09	$5.15 million	$0.84	28.15

Electromed has higher revenue and earnings than Nexeon Medsystems.

Profitability

This table compares Nexeon Medsystems and Electromed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexeon Medsystems	N/A	N/A	N/A
Electromed	11.34%	15.71%	13.37%

Insider & Institutional Ownership

40.8% of Electromed shares are held by institutional investors. 61.2% of Nexeon Medsystems shares are held by company insiders. Comparatively, 14.0% of Electromed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Nexeon Medsystems has a beta of 6.98, suggesting that its stock price is 598% more volatile than the S&P 500. Comparatively, Electromed has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Summary

Electromed beats Nexeon Medsystems on 9 of the 11 factors compared between the two stocks.

About Nexeon Medsystems

Nexeon MedSystems Inc., a medical device company, develops, manufactures, and commercializes neurostimulation technology for the treatment of various neurological disorders through electrical stimulation of neural tissues. Its neurostimulation technology platform would provide treatment to patients in several neurostimulator markets, including deep brain stimulation, peripheral electrical nerve stimulation, sacral nerve stimulation, spinal cord stimulation, vagus nerve stimulation, and other neurostimulator markets. The company develops the Viant, a deep brain stimulation system for Parkinson's disease in the United States, as well as for Parkinson's disease, Essential Tremor, and Dystonia in Europe. Nexeon MedSystems Inc. was founded in 2015 and is based in Dallas, Texas.

About Electromed

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy and amyotrophic lateral sclerosis; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products to hospitals, home health care centers, pulmonary rehabilitation centers, cystic fibrosis centers, neuromuscular clinics, and other clinics through distributors. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.