Alpha Tau Medical (NASDAQ:DRTS) versus Nuwellis (NASDAQ:NUWE) Critical Comparison

Nuwellis (NASDAQ:NUWE) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nuwellis and Alpha Tau Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuwellis	1	0	1	0	2.00
Alpha Tau Medical	2	0	2	0	2.00

Alpha Tau Medical has a consensus price target of $8.00, suggesting a potential upside of 14.45%. Given Alpha Tau Medical’s higher possible upside, analysts plainly believe Alpha Tau Medical is more favorable than Nuwellis.

Earnings & Valuation

This table compares Nuwellis and Alpha Tau Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuwellis	$8.74 million	0.42	-$11.16 million	($107.91)	-0.02
Alpha Tau Medical	N/A	N/A	-$31.75 million	($0.52)	-13.44

Nuwellis has higher revenue and earnings than Alpha Tau Medical. Alpha Tau Medical is trading at a lower price-to-earnings ratio than Nuwellis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nuwellis and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuwellis	-202.83%	-1,367.63%	-202.97%
Alpha Tau Medical	N/A	-56.45%	-41.76%

Institutional & Insider Ownership

3.1% of Nuwellis shares are held by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are held by institutional investors. 20.1% of Nuwellis shares are held by insiders. Comparatively, 39.5% of Alpha Tau Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Nuwellis has a beta of -0.19, meaning that its share price is 119% less volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Summary

Alpha Tau Medical beats Nuwellis on 8 of the 12 factors compared between the two stocks.

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.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.