Financial Contrast: NEXGEL (NASDAQ:NXGL) versus Apyx Medical (NASDAQ:APYX)

Apyx Medical (NASDAQ:APYX) and NEXGEL (NASDAQ:NXGL) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

Apyx Medical has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Apyx Medical and NEXGEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apyx Medical	-35.75%	-54.90%	-28.41%
NEXGEL	-77.19%	-49.49%	-30.50%

Analyst Recommendations

This is a summary of current recommendations and price targets for Apyx Medical and NEXGEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apyx Medical	0	0	2	0	3.00
NEXGEL	0	0	0	0	N/A

Apyx Medical currently has a consensus price target of $6.17, indicating a potential upside of 337.35%. Given Apyx Medical’s higher probable upside, analysts plainly believe Apyx Medical is more favorable than NEXGEL.

Earnings and Valuation

This table compares Apyx Medical and NEXGEL’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apyx Medical	$52.35 million	0.93	-$18.71 million	($0.54)	-2.61
NEXGEL	$4.09 million	3.38	-$3.16 million	($0.56)	-3.96

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

Institutional & Insider Ownership

55.3% of Apyx Medical shares are held by institutional investors. Comparatively, 2.2% of NEXGEL shares are held by institutional investors. 13.1% of Apyx Medical shares are held by company insiders. Comparatively, 27.2% of NEXGEL shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Apyx Medical beats NEXGEL on 9 of the 13 factors compared between the two stocks.

About Apyx Medical

Apyx Medical Corporation, an energy technology company, develops, manufactures, and sells medical devices in the cosmetic and surgical markets in the United States and internationally. It operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). The company offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. Its Helium Plasma Technology products are marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market. It also develops and manufactures hand pieces for open and laparoscopic procedures; and OEM generators and related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.

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.