Critical Analysis: NexGel (NXGL) versus Its Competitors

NexGel (NASDAQ:NXGL) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare NexGel to related businesses based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Profitability

This table compares NexGel and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexGel	-51.26%	-121.18%	-41.15%
NexGel Competitors	-276.78%	-149.08%	-21.73%

Analyst Recommendations

This is a summary of current ratings and recommmendations for NexGel and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexGel	1	2	0	0	1.67
NexGel Competitors	4270	10537	18302	828	2.46

NexGel currently has a consensus price target of $40.00, suggesting a potential upside of 984.30%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 20.47%. Given NexGel’s higher possible upside, analysts plainly believe NexGel is more favorable than its rivals.

Insider and Institutional Ownership

2.2% of NexGel shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 19.8% of NexGel shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

NexGel has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, NexGel’s rivals have a beta of 2.57, meaning that their average share price is 157% more volatile than the S&P 500.

Earnings and Valuation

This table compares NexGel and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NexGel	$11.42 million	-$3.00 million	-0.26
NexGel Competitors	$1.89 billion	$137.77 million	9.69

NexGel’s rivals have higher revenue and earnings than NexGel. NexGel is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

NexGel rivals beat NexGel on 9 of the 13 factors compared.

NexGel Company Profile

NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.