Analyzing NeuroOne Medical Technologies (NASDAQ:NMTC) & Pulmonx (NASDAQ:LUNG)

NeuroOne Medical Technologies (NASDAQ:NMTC) and Pulmonx (NASDAQ:LUNG) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations for NeuroOne Medical Technologies and Pulmonx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroOne Medical Technologies	0	0	0	0	N/A
Pulmonx	0	1	5	0	2.83

Pulmonx has a consensus price target of $14.83, indicating a potential upside of 120.08%. Given Pulmonx’s higher possible upside, analysts plainly believe Pulmonx is more favorable than NeuroOne Medical Technologies.

Profitability

This table compares NeuroOne Medical Technologies and Pulmonx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroOne Medical Technologies	-308.51%	-276.12%	-199.83%
Pulmonx	-75.56%	-50.79%	-33.06%

Institutional and Insider Ownership

16.1% of NeuroOne Medical Technologies shares are owned by institutional investors. Comparatively, 91.0% of Pulmonx shares are owned by institutional investors. 7.5% of NeuroOne Medical Technologies shares are owned by company insiders. Comparatively, 5.7% of Pulmonx shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

NeuroOne Medical Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares NeuroOne Medical Technologies and Pulmonx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroOne Medical Technologies	$3.92 million	7.17	-$11.86 million	($0.58)	-1.74
Pulmonx	$76.58 million	3.39	-$60.84 million	($1.54)	-4.34

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

Summary

Pulmonx beats NeuroOne Medical Technologies on 7 of the 13 factors compared between the two stocks.

About NeuroOne Medical Technologies

NeuroOne Medical Technologies Corporation, a developmental stage company, provides solutions for EEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson’s disease, dystonia, essential tremors, and chronic pain due to failed back surgeries and other related neurological disorders. It also fucuses on applications for other areas, such as depression, mood disorders, pain, incontinence, high blood pressure, and artificial intelligence. It has a strategic partnership with RBC Medical Innovations to develop a radio frequency ablation generator. The company was incorporated in 2009 and is based in Eden Prairie, Minnesota.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.