Critical Review: Micron Solutions (OTCMKTS:MICR) versus Semler Scientific (NASDAQ:SMLR)

Semler Scientific (NASDAQ:SMLR) and Micron Solutions (OTCMKTS:MICR) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Semler Scientific and Micron Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	27.00%	20.31%	18.78%
Micron Solutions	N/A	N/A	N/A

Valuation and Earnings

This table compares Semler Scientific and Micron Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semler Scientific	$68.18 million	8.79	$20.58 million	$2.05	31.55
Micron Solutions	$22.57 million	0.00	-$1.29 million	($0.43)	N/A

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

Risk and Volatility

Semler Scientific has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Micron Solutions has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Semler Scientific and Micron Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	0	0	0	1	4.00
Micron Solutions	0	0	0	0	0.00

Given Micron Solutions’ higher possible upside, analysts clearly believe Micron Solutions is more favorable than Semler Scientific.

Institutional & Insider Ownership

49.4% of Semler Scientific shares are owned by institutional investors. 30.2% of Semler Scientific shares are owned by company insiders. Comparatively, 26.1% of Micron Solutions shares are owned by company 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.

Summary

Semler Scientific beats Micron Solutions on 12 of the 13 factors compared between the two stocks.

About Semler Scientific

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.

About Micron Solutions

Micron Solutions, Inc. operates as a contract manufacturer for the medical device, defense, and life sciences markets. It offers precision machining, thermoplastic injection molding, mold making products; sensors; orthopedic implants and devices; and diagnostic test kits. The company provides solutions for medical, orthopedics, consumer, and automotive industries. Micron Solutions, Inc. was founded in 1978 and is based in Fitchburg, Massachusetts.