Aradigm (NASDAQ:ARDM) and Zynex (OTCMKTS:ZYXI) 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, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Institutional & Insider Ownership
30.0% of Aradigm shares are held by institutional investors. Comparatively, 0.1% of Zynex shares are held by institutional investors. 4.5% of Aradigm shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Aradigm and Zynex, as reported by MarketBeat.com.
Zynex has a consensus price target of $7.00, suggesting a potential upside of 138.10%. Given Zynex’s stronger consensus rating and higher possible upside, analysts plainly believe Zynex is more favorable than Aradigm.
Volatility and Risk
Aradigm has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Earnings & Valuation
This table compares Aradigm and Zynex’s revenue, earnings per share and valuation.
Zynex has higher revenue and earnings than Aradigm. Aradigm is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
This table compares Aradigm and Zynex’s net margins, return on equity and return on assets.
Zynex beats Aradigm on 11 of the 14 factors compared between the two stocks.
Aradigm Corporation, a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. Its lead development candidates are proprietary formulations of the potent antibiotic ciprofloxacin, including Linhaliq and Lipoquin that are delivered by inhalation for the management of infections associated with severe respiratory diseases, including non-cystic fibrosis bronchiectasis, cystic fibrosis, and non-tuberculosis mycobacterium. The company is also developing inhaled ciprofloxacin formulations for treatment of patients with cystic fibrosis, and has tested for the prevention and treatment of inhaled bioterrorism infections, such as Coxiella burnetii or Q fever, inhalation anthrax, tularemia, melioidosis and pneumonic plague. Aradigm Corporation has collaboration agreements with Grifols, S.A. The company was founded in 1991 and is headquartered in Hayward, California.
Zynex, Inc., a medical technology company, designs, manufactures, and markets electrotherapy medical devices used for pain management and rehabilitation. Its products include NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation device; NeuroMove, an electromyography triggered electrical stimulation device; and InWave, an electrical stimulation product for the treatment of female urinary incontinence. The company also distributes private labeled products, such as electrodes for the delivery of electrical current to the body; batteries for use in electrotherapy products; Comfortrac for cervical traction; JetStream for hot/cold therapy; and LSO Back Braces for lumbar support. In addition, it develops non-invasive blood volume monitors for use in hospitals and surgery centers. The company offers its products for pain management and control; and stroke and spinal cord injury rehabilitation. It sells its products through direct and independent sales representatives primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.