Nephros (NASDAQ:NEPH – Get Free Report) and Aethlon Medical (NASDAQ:AEMD – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings and target prices for Nephros and Aethlon Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nephros | 0 | 0 | 1 | 0 | 3.00 |
| Aethlon Medical | 0 | 0 | 1 | 0 | 3.00 |
Nephros presently has a consensus price target of $5.00, suggesting a potential upside of 213.48%. Aethlon Medical has a consensus price target of $7.00, suggesting a potential upside of 1,531.70%. Given Aethlon Medical’s higher possible upside, analysts plainly believe Aethlon Medical is more favorable than Nephros.
Volatility & Risk
Institutional and Insider Ownership
41.1% of Nephros shares are owned by institutional investors. Comparatively, 2.0% of Aethlon Medical shares are owned by institutional investors. 4.1% of Nephros shares are owned by insiders. Comparatively, 1.1% of Aethlon Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Nephros and Aethlon Medical”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nephros | $14.16 million | 1.19 | -$1.58 million | ($0.09) | -17.72 |
| Aethlon Medical | $570,000.00 | 10.88 | -$12.21 million | ($1.58) | -0.27 |
Nephros has higher revenue and earnings than Aethlon Medical. Nephros is trading at a lower price-to-earnings ratio than Aethlon Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nephros and Aethlon Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nephros | -6.86% | -11.39% | -8.30% |
| Aethlon Medical | N/A | -153.96% | -109.13% |
Summary
Nephros beats Aethlon Medical on 7 of the 12 factors compared between the two stocks.
About Nephros
Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.
About Aethlon Medical
Aethlon Medical, Inc., a medical therapeutic company, focuses on developing products to treat cancer and life-threatening infectious diseases in the United States. It develops Hemopurifier, a clinical-stage immunotherapeutic device that removes tumor-derived exosomes and life-threatening viruses and use in organ transplantation. The company was incorporated in 1999 and is based in San Diego, California.
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