Reviewing Nuwellis (NASDAQ:NUWE) and FONAR (NASDAQ:FONR)

FONAR (NASDAQ:FONRGet Rating) and Nuwellis (NASDAQ:NUWEGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares FONAR and Nuwellis’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FONAR $89.93 million 1.15 $10.21 million N/A N/A
Nuwellis $7.92 million 0.75 -$19.58 million ($2.30) -0.26

FONAR has higher revenue and earnings than Nuwellis.

Insider and Institutional Ownership

45.7% of FONAR shares are owned by institutional investors. Comparatively, 18.2% of Nuwellis shares are owned by institutional investors. 8.6% of FONAR shares are owned by company insiders. Comparatively, 0.9% of Nuwellis 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.

Analyst Recommendations

This is a breakdown of current recommendations for FONAR and Nuwellis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FONAR 0 0 0 0 N/A
Nuwellis 0 0 2 0 3.00

Nuwellis has a consensus target price of $7.50, suggesting a potential upside of 1,170.33%. Given Nuwellis’ higher probable upside, analysts clearly believe Nuwellis is more favorable than FONAR.

Profitability

This table compares FONAR and Nuwellis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FONAR 10.96% 8.66% 6.34%
Nuwellis -237.48% -72.68% -62.63%

Volatility and Risk

FONAR has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Nuwellis has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

FONAR beats Nuwellis on 9 of the 12 factors compared between the two stocks.

FONAR Company Profile (Get Rating)

FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates through two segments, Medical Equipment segment, and Physician Management and Diagnostic services segment. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters and the development and implementation of practice growth and marketing strategies. The company owns and operates 5 diagnostic imaging facilities in Florida; and manages 39 MRI scanning facilities, including 25 facilities located in New York and 14 situated in Florida. It markets its scanners to private diagnostic imaging centers and hospitals. The company was incorporated in 1978 and is based in Melville, New York.

Nuwellis Company Profile (Get Rating)

Nuwellis, Inc., a medical device company, focuses on developing, manufacturing, and commercializing medical devices used in ultrafiltration therapy. The company's products are the Aquadex FlexFlow and Aquadex SmartFlow systems, which are indicated for the treatment of patients suffering from fluid overload who have failed diuretics. Its Aquadex FlexFlow system includes a console, disposable blood set, and catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors primarily in Austria, Brazil, Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.

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