Nephros (NASDAQ:NEPH – Get Free Report) and iRadimed (NASDAQ:IRMD – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
41.1% of Nephros shares are owned by institutional investors. Comparatively, 92.3% of iRadimed shares are owned by institutional investors. 6.7% of Nephros shares are owned by company insiders. Comparatively, 34.6% of iRadimed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Nephros and iRadimed”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nephros | $20.72 million | 1.86 | $1.19 million | $0.16 | 22.19 |
| iRadimed | $86.34 million | 13.23 | $22.48 million | $1.79 | 49.92 |
iRadimed has higher revenue and earnings than Nephros. Nephros is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nephros and iRadimed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nephros | 8.38% | 10.60% | 8.05% |
| iRadimed | 26.70% | 23.45% | 20.36% |
Volatility & Risk
Nephros has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, iRadimed has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Nephros and iRadimed, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nephros | 0 | 3 | 1 | 0 | 2.25 |
| iRadimed | 0 | 3 | 2 | 1 | 2.67 |
Nephros currently has a consensus target price of $4.00, indicating a potential upside of 12.68%. iRadimed has a consensus target price of $120.00, indicating a potential upside of 34.30%. Given iRadimed’s stronger consensus rating and higher probable upside, analysts clearly believe iRadimed is more favorable than Nephros.
Summary
iRadimed beats Nephros on 14 of the 15 factors compared between the two stocks.
About Nephros
Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that 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 waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.
About iRadimed
IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.
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