Comparing Nuwellis (NASDAQ:NUWE) and Outset Medical (NASDAQ:OM)

Nuwellis (NASDAQ:NUWE) and Outset Medical (NASDAQ:OM) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Earnings & Valuation

This table compares Nuwellis and Outset Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuwellis $7.44 million 3.24 -$15.84 million ($10.67) -0.35
Outset Medical $49.94 million 46.93 -$121.49 million ($4.85) -10.43

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

Institutional & Insider Ownership

10.1% of Nuwellis shares are held by institutional investors. Comparatively, 99.9% of Outset Medical shares are held by institutional investors. 0.4% of Nuwellis shares are held by insiders. Comparatively, 5.6% of Outset Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nuwellis and Outset Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuwellis 0 0 1 0 3.00
Outset Medical 0 3 6 0 2.67

Nuwellis currently has a consensus target price of $9.00, indicating a potential upside of 143.90%. Outset Medical has a consensus target price of $59.33, indicating a potential upside of 17.26%. Given Nuwellis’ stronger consensus rating and higher possible upside, equities analysts clearly believe Nuwellis is more favorable than Outset Medical.

Profitability

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

Net Margins Return on Equity Return on Assets
Nuwellis -206.57% -74.40% -64.71%
Outset Medical -170.05% -37.89% -31.40%

Summary

Outset Medical beats Nuwellis on 9 of the 13 factors compared between the two stocks.

About Nuwellis

Nuwellis, Inc. operates as a medical device company. It engages in the provision of products for the treatment of fluid overload. The firm’s products include Aquadex FlexFlow System, which provides an ultrafiltration for the removal of salt and water in patients with hypervolemia, or fluid overload. It operates through Cardiac and Coronary Disease Products segment. The company was founded by Crispin Marsh and William S. Peters in November 1999 and is headquartered in Eden Prairie, MN.

About Outset Medical

Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. It offers Tablo Hemodialysis System, which comprises of a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

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