Nephros (OTCMKTS:NEPHD) and AngioDynamics (NASDAQ:ANGO) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Volatility & Risk

Nephros has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, AngioDynamics has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nephros and AngioDynamics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nephros $5.69 million 10.93 -$3.40 million ($0.54) -15.02
AngioDynamics $264.16 million 1.18 -$165.79 million $0.09 91.78

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

Profitability

This table compares Nephros and AngioDynamics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nephros -52.25% -56.46% -36.62%
AngioDynamics -62.76% 0.62% 0.52%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nephros and AngioDynamics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nephros 0 0 0 0 N/A
AngioDynamics 0 1 1 0 2.50

AngioDynamics has a consensus target price of $17.50, indicating a potential upside of 111.86%. Given AngioDynamics’ higher probable upside, analysts plainly believe AngioDynamics is more favorable than Nephros.

Insider and Institutional Ownership

97.8% of AngioDynamics shares are owned by institutional investors. 6.8% of Nephros shares are owned by insiders. Comparatively, 3.6% of AngioDynamics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

AngioDynamics beats Nephros on 8 of the 13 factors compared between the two stocks.

Nephros Company Profile

Nephros, Inc., a commercial stage medical device and commercial product company, develops and sells liquid purification filters and hemodiafiltration (HDF) systems primarily in the United States. It operates through two segments, Water Filtration and Renal Products. The company's ultrafilters are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from water borne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. It offers HDF systems for use in conjunction with a hemodialysis machine that enables nephrologists to provide HDF treatment to patients with end stage renal disease; hemodiafilters for use as dialyzers in hemodialysis treatment; and water filters to food service, hospitality, and convenience store markets under the AETHER brand name. The company was founded in 1997 and is headquartered in South Orange, New Jersey.

AngioDynamics Company Profile

AngioDynamics, Inc. designs, manufactures, and sells various medical, surgical, and diagnostic devices for the treatment of peripheral vascular disease, vascular access, and for use in oncology and surgical settings in the United States and internationally. The company provides AngioVac venous drainage system that includes venous drainage cannula for the removal of fresh, soft thrombi, or emboli during extracorporeal bypass; and cardiopulmonary bypass circuit for use in procedures during extracorporeal circulatory support. It also offers thrombolytic catheters to deliver thrombolytic agents; angiographic products and accessories for use in during peripheral vascular interventional procedures; drainage products, which drain abscesses and other fluid pockets; and micro access sets. In addition, the company provides manifolds, contrast management systems, closed fluid systems, guidewires, disposable transducers, and interventional accessories that help clinicians in the diagnosis and treatment of cardiovascular and peripheral vascular diseases; VenaCure EVLT laser system products to treat superficial venous diseases; and Asclera injection for treating uncomplicated spider and reticular veins of the lower extremities. Further, it provides NanoKnife ablation systems for the surgical ablation of soft tissues; solero microwave tissue ablation system; and radiofrequency ablation products for ablating solid cancerous or benign tumors. Additionally, the company offers peripherally inserted central catheters, midline catheters, implantable ports, dialysis catheters, and related accessories and supplies. It sells and markets its products to interventional radiologists, interventional cardiologists, vascular surgeons, urologists, interventional and surgical oncologists, and critical care nurses directly, as well as through distributor relationships. The company was founded in 1988 and is headquartered in Latham, New York.

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