NexGel (NASDAQ:NXGL – Get Free Report) and LENSAR (NASDAQ:LNSR – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Institutional & Insider Ownership
2.2% of NexGel shares are held by institutional investors. Comparatively, 40.2% of LENSAR shares are held by institutional investors. 23.4% of NexGel shares are held by company insiders. Comparatively, 65.8% of LENSAR shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares NexGel and LENSAR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexGel | -28.54% | -64.29% | -29.64% |
| LENSAR | 50.94% | -183.19% | 42.26% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexGel | 1 | 0 | 1 | 0 | 2.00 |
| LENSAR | 1 | 0 | 2 | 0 | 2.33 |
NexGel presently has a consensus target price of $2.00, suggesting a potential upside of 284.69%. LENSAR has a consensus target price of $10.00, suggesting a potential upside of 76.99%. Given NexGel’s higher possible upside, equities analysts clearly believe NexGel is more favorable than LENSAR.
Volatility & Risk
NexGel has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares NexGel and LENSAR”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexGel | $11.42 million | 0.42 | -$3.00 million | ($0.40) | -1.30 |
| LENSAR | $58.44 million | 1.19 | -$34.28 million | ($0.58) | -9.74 |
NexGel has higher earnings, but lower revenue than LENSAR. LENSAR is trading at a lower price-to-earnings ratio than NexGel, indicating that it is currently the more affordable of the two stocks.
Summary
LENSAR beats NexGel on 9 of the 14 factors compared between the two stocks.
About NexGel
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
About LENSAR
LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.
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