Critical Review: Nemaura Medical (NASDAQ:NMRD) versus PAVmed (NASDAQ:PAVM)

Nemaura Medical (NASDAQ:NMRD) and PAVmed (NASDAQ:PAVM) 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, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

4.4% of Nemaura Medical shares are held by institutional investors. Comparatively, 19.9% of PAVmed shares are held by institutional investors. 41.6% of Nemaura Medical shares are held by company insiders. Comparatively, 12.6% of PAVmed shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Nemaura Medical has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, PAVmed has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nemaura Medical and PAVmed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nemaura Medical	0	0	1	0	3.00
PAVmed	0	1	0	0	2.00

Nemaura Medical currently has a consensus price target of $2.50, suggesting a potential upside of 7,475.76%. PAVmed has a consensus price target of $21.00, suggesting a potential upside of 854.55%. Given Nemaura Medical’s stronger consensus rating and higher probable upside, research analysts plainly believe Nemaura Medical is more favorable than PAVmed.

Valuation & Earnings

This table compares Nemaura Medical and PAVmed’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nemaura Medical	$80,000.00	16.64	-$14.14 million	($0.39)	-0.08
PAVmed	$2.45 million	8.47	-$64.18 million	($9.33)	-0.24

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

Profitability

This table compares Nemaura Medical and PAVmed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nemaura Medical	N/A	N/A	-142.69%
PAVmed	-2,617.25%	N/A	-85.99%

Summary

Nemaura Medical beats PAVmed on 9 of the 13 factors compared between the two stocks.

About Nemaura Medical

Nemaura Medical Inc., a medical technology company, manufactures continuous glucose monitoring system in the United States. It offers sugarBEAT, a non-invasive continuous glucose monitoring device for use by persons with Type I and Type II diabetes, as well as screen pre-diabetic patients. The company also offers proBEAT, a wellness guidance notes, that provide prompts and educate users on factors affecting blood sugar profiles, as well as conducts diabetes prevention and reversal programs. Nemaura Medical Inc. was founded in 2009 and is based in New York, New York.

About PAVmed

PAVmed Inc. operates as a medical device company in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; and EsoCheck, an esophageal cell collection device for the early detection of adenocarcinoma of the esophagus and Barrett's Esophagus (BE); and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay. Its product pipeline also comprises EsoCure, an esophageal ablation device to treat dysplastic BE; PortIO, an implantable intraosseous vascular access device; NextFlo; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.