Contrasting Nexeon Medsystems (NXNN) and IRIDEX (IRIX)

Nexeon Medsystems (NASDAQ: IRIX) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Profitability

This table compares Nexeon Medsystems and IRIDEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexeon Medsystems -7.70% -40.39% -22.91%
IRIDEX -36.98% -51.61% -38.41%

Institutional and Insider Ownership

47.5% of IRIDEX shares are held by institutional investors. 61.2% of Nexeon Medsystems shares are held by insiders. Comparatively, 4.8% of IRIDEX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Nexeon Medsystems and IRIDEX’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexeon Medsystems $3.30 million 3.88 -$2.17 million ($3.64) -1.79
IRIDEX $41.59 million 1.83 -$12.86 million ($1.11) -5.87

Nexeon Medsystems has higher earnings, but lower revenue than IRIDEX. IRIDEX is trading at a lower price-to-earnings ratio than Nexeon Medsystems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Nexeon Medsystems and IRIDEX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexeon Medsystems 0 1 0 0 2.00
IRIDEX 0 0 1 0 3.00

IRIDEX has a consensus price target of $13.00, indicating a potential upside of 99.39%. Given IRIDEX’s stronger consensus rating and higher possible upside, analysts plainly believe IRIDEX is more favorable than Nexeon Medsystems.

Summary

Nexeon Medsystems beats IRIDEX on 7 of the 13 factors compared between the two stocks.

Nexeon Medsystems Company Profile

Nexeon MedSystems Inc., a medical device company, develops, manufactures, and commercializes neurostimulation technology for the treatment of various neurological disorders through electrical stimulation of neural tissues. Its neurostimulation technology platform would provide treatment to patients in several neurostimulator markets, including deep brain stimulation, peripheral electrical nerve stimulation, sacral nerve stimulation, spinal cord stimulation, vagus nerve stimulation, and other neurostimulator markets. The company develops the Viant, a deep brain stimulation system for Parkinson's disease in the United States, as well as for Parkinson's disease, Essential Tremor, and Dystonia in Europe. Nexeon MedSystems Inc. was founded in 2015 and is based in Dallas, Texas.

IRIDEX Company Profile

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. The company offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser systems, which are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. It also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; and slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures. In addition, the company offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system that delivers laser to treat glaucoma; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe Illuminate and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products used in vitrectomy procedures. It serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, and office clinics. IRIDEX Corporation markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was founded in 1989 and is headquartered in Mountain View, California.

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