Critical Survey: PAVmed (NASDAQ:PAVM) and PolyPid (NASDAQ:PYPD)

PolyPid (NASDAQ:PYPD) and PAVmed (NASDAQ:PAVM) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares PolyPid and PAVmed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PolyPid	N/A	N/A	-$23.86 million	($7.81)	-0.31
PAVmed	$2.45 million	3.26	-$64.18 million	($4.35)	-0.17

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

Insider and Institutional Ownership

26.5% of PolyPid shares are owned by institutional investors. Comparatively, 19.9% of PAVmed shares are owned by institutional investors. 24.7% of PolyPid shares are owned by insiders. Comparatively, 14.7% of PAVmed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

PolyPid has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, PAVmed has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PolyPid	N/A	-1,219.71%	-134.48%
PAVmed	602.97%	N/A	-92.36%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PolyPid and PAVmed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PolyPid	0	0	2	0	3.00
PAVmed	0	0	1	1	3.50

PolyPid currently has a consensus price target of $12.00, suggesting a potential upside of 393.83%. PAVmed has a consensus price target of $19.00, suggesting a potential upside of 2,537.42%. Given PAVmed’s stronger consensus rating and higher probable upside, analysts clearly believe PAVmed is more favorable than PolyPid.

Summary

PAVmed beats PolyPid on 9 of the 14 factors compared between the two stocks.

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.

About PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs 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; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; 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.