Critical Review: Nuwellis (NASDAQ:NUWE) & PROCEPT BioRobotics (NASDAQ:PRCT)

PROCEPT BioRobotics (NASDAQ:PRCT) and Nuwellis (NASDAQ:NUWE) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Earnings and Valuation

This table compares PROCEPT BioRobotics and Nuwellis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$224.50 million	8.14	-$91.41 million	($1.53)	-21.39
Nuwellis	$8.74 million	0.39	-$11.16 million	($107.91)	-0.02

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PROCEPT BioRobotics and Nuwellis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	1	2	9	1	2.77
Nuwellis	1	0	1	0	2.00

PROCEPT BioRobotics currently has a consensus target price of $53.40, suggesting a potential upside of 63.20%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, equities analysts plainly believe PROCEPT BioRobotics is more favorable than Nuwellis.

Volatility and Risk

PROCEPT BioRobotics has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Nuwellis has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500.

Profitability

This table compares PROCEPT BioRobotics and Nuwellis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-28.20%	-21.72%	-16.28%
Nuwellis	-202.83%	-1,367.63%	-202.97%

Insider and Institutional Ownership

89.5% of PROCEPT BioRobotics shares are owned by institutional investors. Comparatively, 3.1% of Nuwellis shares are owned by institutional investors. 17.4% of PROCEPT BioRobotics shares are owned by insiders. Comparatively, 20.1% of Nuwellis shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

PROCEPT BioRobotics beats Nuwellis on 12 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About Nuwellis

Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.