Financial Analysis: iCAD (NASDAQ:ICAD) vs. Femasys (NASDAQ:FEMY)

iCAD (NASDAQ:ICAD) and Femasys (NASDAQ:FEMY) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for iCAD and Femasys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iCAD	0	0	2	0	3.00
Femasys	0	0	3	0	3.00

iCAD presently has a consensus target price of $4.33, indicating a potential upside of 169.15%. Femasys has a consensus target price of $10.67, indicating a potential upside of 588.17%. Given Femasys’ higher possible upside, analysts plainly believe Femasys is more favorable than iCAD.

Profitability

This table compares iCAD and Femasys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iCAD	-27.08%	-22.06%	-14.84%
Femasys	-1,164.78%	-100.01%	-84.97%

Valuation and Earnings

This table compares iCAD and Femasys’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iCAD	$25.36 million	1.67	-$4.85 million	($0.22)	-7.32
Femasys	$1.21 million	27.73	-$11.39 million	($0.97)	-1.60

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

Risk & Volatility

iCAD has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Femasys has a beta of -2.95, indicating that its stock price is 395% less volatile than the S&P 500.

Institutional and Insider Ownership

24.6% of iCAD shares are held by institutional investors. Comparatively, 65.3% of Femasys shares are held by institutional investors. 12.0% of iCAD shares are held by company insiders. Comparatively, 16.4% of Femasys shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

iCAD beats Femasys on 7 of the 13 factors compared between the two stocks.

About iCAD

iCAD, Inc. engages in the provision of cancer detection and therapy solutions in the United States. It operates through two segments, Cancer Detection and Cancer Therapy. The company's breast AI suite includes cancer detection, automated density assessment, and breast cancer risk assessment solutions for both 2D and 3D mammography. It offers PowerLook, a back-end architecture platform, which hosts the AI algorithm solutions and manages the communications between imaging acquisition systems, and image storage and review systems; SecondLook, a machine learning-based cancer detection algorithm that analyzes 2D full-field digital mammography images to identify and mark suspicious masses and calcifications; and PowerLook Density Assessment provides automated, consistent, and standardized breast density assessments. The company also offers ProFound AI, a deep-learning algorithm designed to detect malignant soft-tissue densities and calcifications in digital breast tomosynthesis; ProFound AI Risk, a clinical decision support tool that provides breast cancer risk estimation based on a screening mammogram; and VeraLook, a solution designed to support detection of colonic polyps in conjunction with Computed Tomography Colonography. In addition, it offers Xoft Axxent electronic brachytherapy systems for the treatment of early-stage breast, non-melanoma skin, and gynecological cancers to university research and community hospitals, cancer care clinics, veterinary facilities, and dermatology offices. The company sells its products through direct sales organizations, as well as through various original equipment manufacturer partners, distributors, technology platform partners, and resellers. It also exports its products in Europe, Taiwan, Canada, China, and internationally. The company was formerly known as Howtek, Inc. and changed its name to iCAD, Inc. in June 2002. iCAD, Inc. was incorporated in 1984 and is headquartered in Nashua, New Hampshire.

About Femasys

Femasys Inc., a biomedical company, develops novel solutions for women's healthcare market in the United States and internationally. The company provides FemVue saline-air device, a contrast-generating product in the United States, Canada, Japan, and Hong Kong; FemCath, a cornual balloon catheter, a single intrauterine directional delivery product that allows for selective evaluation of an individual fallopian tube; and FemCerv, a biopsy device for endocervical curettage, which can be used to sample cervical cells and tissue circumferentially with sample containment within the device to minimize contamination. It also develops permanent birth control solutions, such as FemBloc and FemChec; FemaSeed, an artificial insemination solution; and FemEMB, a product candidate for endometrial sampling in support of uterine cancer detection testing. In addition, the company provides non-surgical product technologies. It offers its infertility products to obstetrics-gynecological physicians, related healthcare professionals, women's healthcare provider organizations, and reproductive endocrinologists. Femasys Inc. was incorporated in 2004 and is headquartered in Suwanee, Georgia.