Comparing Semler Scientific (NASDAQ:SMLR) and NexGel (NASDAQ:NXGL)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Semler Scientific and NexGel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	1	0	4	0	2.60
NexGel	1	0	0	0	1.00

Semler Scientific currently has a consensus target price of $74.25, indicating a potential upside of 242.01%. Given Semler Scientific’s stronger consensus rating and higher possible upside, research analysts plainly believe Semler Scientific is more favorable than NexGel.

Insider and Institutional Ownership

49.4% of Semler Scientific shares are owned by institutional investors. Comparatively, 2.2% of NexGel shares are owned by institutional investors. 16.4% of Semler Scientific shares are owned by insiders. Comparatively, 20.6% of NexGel shares are owned 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.

Valuation & Earnings

This table compares Semler Scientific and NexGel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semler Scientific	$56.29 million	5.85	$40.90 million	$2.78	7.81
NexGel	$8.69 million	1.66	-$3.28 million	($0.37)	-4.79

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

Risk and Volatility

Semler Scientific has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, NexGel has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	130.80%	34.21%	25.58%
NexGel	-24.69%	-47.35%	-24.67%

Summary

Semler Scientific beats NexGel on 13 of the 14 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 NexGel

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.