Head-To-Head Analysis: Semler Scientific (NASDAQ:SMLR) versus Cutera (NASDAQ:CUTR)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Semler Scientific and Cutera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	0	0	0	0	N/A
Cutera	0	2	2	0	2.50

Cutera has a consensus target price of $14.75, indicating a potential upside of 903.40%. Given Cutera’s higher probable upside, analysts plainly believe Cutera is more favorable than Semler Scientific.

Profitability

This table compares Semler Scientific and Cutera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	30.19%	30.60%	27.15%
Cutera	-68.87%	N/A	-34.04%

Risk & Volatility

Semler Scientific has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Cutera has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Insider & Institutional Ownership

49.4% of Semler Scientific shares are held by institutional investors. Comparatively, 90.7% of Cutera shares are held by institutional investors. 13.0% of Semler Scientific shares are held by insiders. Comparatively, 2.1% of Cutera shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Semler Scientific and Cutera’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	3.01	$20.58 million	$2.64	11.06
Cutera	$230.18 million	0.13	-$150.83 million	($7.34)	-0.20

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

Summary

Semler Scientific beats Cutera on 8 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 Cutera

Cutera, Inc. provides aesthetic and dermatology solutions for medical practitioners worldwide. It develops, manufactures, and markets energy-based product platforms for medical practitioners; and distributes third-party manufactured skincare products. The company provides AviClear for the treatment of mild, moderate, and severe inflammatory acne vulgaris; Secret PRO, a device that utilizes fractional CO2 for skin resurfacing and radio frequency (RF) microneedling for deep dermal remodeling; truFlex, a bio-electrical muscle stimulation device to treat patients at all fitness levels; and excel V+, a vascular and benign pigmented lesion treatment platform. It also offers truSculpt, a high-powered radio frequency system designed for circumferential reduction, lipolysis, and deep tissue heating and treat all body and skin types; Secret RF, a fractional RF microneedling device that delivers heat into the deeper layers of the skin using controlled RF energy; and enlighten, a laser platform with a dual wavelength for multi-colored tattoo removal, and the treatment of benign pigmented lesions and acne scars. In addition, the company provides excel HR, a hair removal solution for all skin types; and xeo, a multi-application platform for the removal of unwanted hair, treatment of vascular lesions, and skin revitalization by treating discoloration, fine lines, and laxity. Further, it offers its products through direct sales and services, and network of distributors and direct international sales. Cutera, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.