Critical Analysis: Spectral AI (MDAI) vs. Its Competitors

Spectral AI (NASDAQ:MDAI) is one of 229 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it weigh in compared to its rivals? We will compare Spectral AI to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Spectral AI and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	3	1	3.25
Spectral AI Competitors	1802	4765	8854	260	2.48

Spectral AI currently has a consensus target price of $4.50, suggesting a potential upside of 212.50%. As a group, “Surgical & medical instruments” companies have a potential upside of 21.57%. Given Spectral AI’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Spectral AI is more favorable than its rivals.

Valuation and Earnings

This table compares Spectral AI and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Spectral AI	$22.53 million	-$20.85 million	-1.07
Spectral AI Competitors	$1.07 billion	$10.77 million	-8.82

Spectral AI’s rivals have higher revenue and earnings than Spectral AI. Spectral AI is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Spectral AI and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-89.85%	N/A	-104.64%
Spectral AI Competitors	-563.95%	-136.63%	-25.35%

Risk and Volatility

Spectral AI has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Spectral AI’s rivals have a beta of 0.52, meaning that their average share price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 48.0% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 56.7% of Spectral AI shares are held by company insiders. Comparatively, 15.4% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Spectral AI beats its rivals on 10 of the 13 factors compared.

Spectral AI Company Profile

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.