Head-To-Head Review: Pulmonx (NASDAQ:LUNG) and Zhongchao (NASDAQ:ZCMD)

Zhongchao (NASDAQ:ZCMD) and Pulmonx (NASDAQ:LUNG) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Zhongchao and Pulmonx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhongchao	N/A	N/A	N/A
Pulmonx	-61.91%	-77.58%	-37.90%

Risk and Volatility

Zhongchao has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Insider and Institutional Ownership

1.7% of Zhongchao shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 28.6% of Zhongchao shares are held by insiders. Comparatively, 6.8% of Pulmonx shares are held by 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.

Analyst Ratings

This is a summary of recent recommendations for Zhongchao and Pulmonx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhongchao	1	0	0	0	1.00
Pulmonx	1	4	5	0	2.40

Pulmonx has a consensus target price of $6.81, suggesting a potential upside of 284.58%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts plainly believe Pulmonx is more favorable than Zhongchao.

Earnings & Valuation

This table compares Zhongchao and Pulmonx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongchao	$15.86 million	0.80	-$640,000.00	N/A	N/A
Pulmonx	$83.79 million	0.87	-$56.39 million	($1.41)	-1.26

Zhongchao has higher earnings, but lower revenue than Pulmonx.

Summary

Pulmonx beats Zhongchao on 7 of the 12 factors compared between the two stocks.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.