P3 Health Partners (NASDAQ:PIII – Get Free Report) and Pulmonx (NASDAQ:LUNG – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Volatility and Risk
P3 Health Partners has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.
Profitability
This table compares P3 Health Partners and Pulmonx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| P3 Health Partners | -8.57% | -302.33% | -19.99% |
| Pulmonx | -60.09% | -92.94% | -39.80% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
| Pulmonx | 1 | 2 | 4 | 0 | 2.43 |
P3 Health Partners presently has a consensus price target of $14.00, indicating a potential upside of 24.67%. Pulmonx has a consensus price target of $5.58, indicating a potential upside of 346.67%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts clearly believe Pulmonx is more favorable than P3 Health Partners.
Valuation and Earnings
This table compares P3 Health Partners and Pulmonx”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| P3 Health Partners | $1.46 billion | 0.06 | -$147.95 million | ($38.60) | -0.29 |
| Pulmonx | $90.50 million | 0.58 | -$54.00 million | ($1.30) | -0.96 |
Pulmonx has lower revenue, but higher earnings than P3 Health Partners. Pulmonx is trading at a lower price-to-earnings ratio than P3 Health Partners, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
7.8% of P3 Health Partners shares are owned by institutional investors. Comparatively, 91.0% of Pulmonx shares are owned by institutional investors. 10.9% of P3 Health Partners shares are owned by insiders. Comparatively, 6.8% of Pulmonx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Pulmonx beats P3 Health Partners on 8 of the 14 factors compared between the two stocks.
About P3 Health Partners
P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.
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.
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