Reviewing NeurAxis (NASDAQ:NRXS) & Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and NeurAxis (NASDAQ:NRXS) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Hyperfine and NeurAxis’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$11.03 million	5.22	-$44.24 million	($0.62)	-1.29
NeurAxis	$2.46 million	8.60	-$14.63 million	($4.59)	-0.70

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

Profitability

This table compares Hyperfine and NeurAxis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-401.00%	-44.89%	-40.96%
NeurAxis	-594.55%	N/A	-899.27%

Analyst Ratings

This is a summary of current ratings and recommmendations for Hyperfine and NeurAxis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	0	2	1	0	2.33
NeurAxis	0	0	1	0	3.00

Hyperfine presently has a consensus price target of $2.12, indicating a potential upside of 164.58%. Given Hyperfine’s higher possible upside, research analysts plainly believe Hyperfine is more favorable than NeurAxis.

Insider & Institutional Ownership

15.0% of Hyperfine shares are held by institutional investors. Comparatively, 11.8% of NeurAxis shares are held by institutional investors. 26.5% of Hyperfine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Hyperfine beats NeurAxis on 7 of the 12 factors compared between the two stocks.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.