Analyzing Zhongchao (NASDAQ:ZCMD) and MDxHealth (NASDAQ:MDXH)

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

Valuation and Earnings

This table compares MDxHealth and Zhongchao”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDxHealth	$107.88 million	0.98	-$33.52 million	($0.67)	-3.19
Zhongchao	$11.38 million	0.68	-$6.31 million	N/A	N/A

Zhongchao has lower revenue, but higher earnings than MDxHealth.

Institutional & Insider Ownership

1.7% of Zhongchao shares are owned by institutional investors. 1.7% of MDxHealth shares are owned by company insiders. Comparatively, 28.6% of Zhongchao shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for MDxHealth and Zhongchao, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDxHealth	1	0	4	0	2.60
Zhongchao	1	0	0	0	1.00

MDxHealth presently has a consensus target price of $7.75, suggesting a potential upside of 262.15%. Given MDxHealth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MDxHealth is more favorable than Zhongchao.

Volatility and Risk

MDxHealth has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Zhongchao has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDxHealth	-31.07%	-1,078.01%	-21.71%
Zhongchao	N/A	N/A	N/A

About MDxHealth

MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, Europe, and internationally. Its testing solutions includes Select mdx, a non-invasive urine test for prostate cancer that measures the expression of two mRNA cancer-related biomarkers; Confirm mdx for prostate cancer tissue test that validates epigenetic test that guides the detection of occult prostate cancer on a patient's previously biopsied negative tissue; and Resolved mdx for urinary tract infection that identifies personalized effective antibiotic options against the patient's infection. The company offers genomic prostate score which provides personalized genomic insights to both physicians and patients navigating the complexities of prostate cancer diagnosis and treatment. It sells its products through urology sales force, consisting of direct sales representatives, strategic account managers, and regional sales managers. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.

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.