Analyzing Spectral AI (NASDAQ:MDAI) & Sensus Healthcare (NASDAQ:SRTS)

Spectral AI (NASDAQ:MDAI) and Sensus Healthcare (NASDAQ:SRTS) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a summary of recent recommendations for Spectral AI and Sensus Healthcare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	0	2.00
Sensus Healthcare	1	1	5	0	2.57

Spectral AI currently has a consensus price target of $4.00, suggesting a potential upside of 93.24%. Sensus Healthcare has a consensus price target of $6.88, suggesting a potential upside of 122.49%. Given Sensus Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Sensus Healthcare is more favorable than Spectral AI.

Insider & Institutional Ownership

67.1% of Spectral AI shares are owned by institutional investors. Comparatively, 25.3% of Sensus Healthcare shares are owned by institutional investors. 13.7% of Spectral AI shares are owned by company insiders. Comparatively, 10.2% of Sensus Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Spectral AI has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Sensus Healthcare has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Spectral AI and Sensus Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-85.58%	N/A	-72.97%
Sensus Healthcare	-34.50%	-15.79%	-14.02%

Valuation and Earnings

This table compares Spectral AI and Sensus Healthcare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$19.65 million	3.35	-$7.57 million	($0.53)	-3.91
Sensus Healthcare	$27.48 million	1.85	-$7.72 million	($0.47)	-6.57

Spectral AI has higher earnings, but lower revenue than Sensus Healthcare. Sensus Healthcare is trading at a lower price-to-earnings ratio than Spectral AI, indicating that it is currently the more affordable of the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About Sensus Healthcare

Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.