Reviewing Sector 10 (OTCMKTS:SECI) and Zynex (NASDAQ:ZYXI)

Sector 10 (OTCMKTS:SECI) and Zynex (NASDAQ:ZYXI) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

29.7% of Zynex shares are held by institutional investors. 9.2% of Sector 10 shares are held by insiders. Comparatively, 49.3% of Zynex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sector 10 and Zynex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sector 10	0	0	0	0	0.00
Zynex	1	0	0	0	1.00

Given Sector 10’s higher possible upside, analysts clearly believe Sector 10 is more favorable than Zynex.

Profitability

This table compares Sector 10 and Zynex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sector 10	N/A	N/A	N/A
Zynex	-68.35%	-804.30%	-36.67%

Valuation and Earnings

This table compares Sector 10 and Zynex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sector 10	N/A	N/A	N/A	($3.43)	N/A
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05

Zynex has higher revenue and earnings than Sector 10. Zynex is trading at a lower price-to-earnings ratio than Sector 10, indicating that it is currently the more affordable of the two stocks.

About Sector 10

Sector 10, Inc., a development stage company, markets MRU SRU product lines and various solutions related to mobile assets. Sector 10, Inc. was incorporated in 1992 and is based in Bellevue, Washington.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.