Analyzing NeurAxis (NASDAQ:NRXS) and Electromed (NYSE:ELMD)

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

Institutional & Insider Ownership

11.8% of NeurAxis shares are owned by institutional investors. Comparatively, 40.8% of Electromed shares are owned by institutional investors. 12.7% of Electromed shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for NeurAxis and Electromed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeurAxis	0	0	1	0	3.00
Electromed	0	0	0	0	N/A

Earnings and Valuation

This table compares NeurAxis and Electromed’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeurAxis	$2.46 million	7.57	-$14.63 million	($3.73)	-0.75
Electromed	$48.07 million	2.56	$3.17 million	$0.50	28.42

Electromed has higher revenue and earnings than NeurAxis. NeurAxis is trading at a lower price-to-earnings ratio than Electromed, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NeurAxis and Electromed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeurAxis	-633.10%	N/A	-926.02%
Electromed	8.14%	10.97%	9.38%

Summary

Electromed beats NeurAxis on 9 of the 11 factors compared between the two stocks.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.

About Electromed

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care and institutional markets for patients with bronchiectasis, cystic fibrosis, and neuromuscular diseases. It markets its products primarily to physicians and health care providers, as well as directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.