Zynex (NASDAQ:ZYXI) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
This table compares Zynex and IRIDEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Zynex has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Earnings and Valuation
This table compares Zynex and IRIDEX’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zynex||$80.12 million||6.85||$9.07 million||$0.26||60.62|
|IRIDEX||$36.35 million||3.31||-$6.33 million||($0.46)||-16.72|
Zynex has higher revenue and earnings than IRIDEX. IRIDEX is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
31.5% of Zynex shares are owned by institutional investors. Comparatively, 24.7% of IRIDEX shares are owned by institutional investors. 44.3% of Zynex shares are owned by company insiders. Comparatively, 2.8% of IRIDEX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Zynex and IRIDEX, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zynex presently has a consensus price target of $21.63, suggesting a potential upside of 36.87%. IRIDEX has a consensus price target of $11.00, suggesting a potential upside of 43.04%. Given IRIDEX’s stronger consensus rating and higher probable upside, analysts plainly believe IRIDEX is more favorable than Zynex.
Zynex beats IRIDEX on 11 of the 14 factors compared between the two stocks.
Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. It offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation (TENS), and neuromuscular electrical stimulation (NMES) device; NeuroMove, an electromyography triggered electrical stimulation device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; and E-Wave, an NMES device. The company also supplies electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products; and distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, and LSO Back Braces for lumbar support. In addition, it offers CM-1500, a blood volume monitor device for monitoring central blood volume for use in operating and recovery rooms to detect blood loss during surgery and internal bleeding during recovery. The company provides its products for use in pain management and control; and stroke and spinal cord injury rehabilitation. Zynex, Inc. sells its products through direct sales force primarily in the United States. The company was founded in 1996 and is headquartered in Englewood, Colorado.
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. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser photocoagulation 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 photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, and office clinics. It 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 incorporated in 1989 and is headquartered in Mountain View, California.
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