IRIDEX (NASDAQ:IRIX) versus NeurAxis (NASDAQ:NRXS) Financial Survey

NeurAxis (NASDAQ:NRXS) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Institutional & Insider Ownership

11.8% of NeurAxis shares are owned by institutional investors. Comparatively, 20.1% of IRIDEX shares are owned by institutional investors. 15.2% of NeurAxis shares are owned by company insiders. Comparatively, 7.3% of IRIDEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for NeurAxis and IRIDEX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeurAxis	0	0	0	0	N/A
IRIDEX	0	1	0	0	2.00

IRIDEX has a consensus target price of $2.00, suggesting a potential upside of 33.78%. Given IRIDEX’s higher possible upside, analysts plainly believe IRIDEX is more favorable than NeurAxis.

Profitability

This table compares NeurAxis and IRIDEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeurAxis	-672.66%	N/A	-787.15%
IRIDEX	-21.84%	-134.37%	-32.23%

Earnings and Valuation

This table compares NeurAxis and IRIDEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeurAxis	$2.27 million	7.82	-$14.63 million	($2.94)	-0.88
IRIDEX	$51.87 million	0.48	-$9.57 million	($0.66)	-2.27

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

Risk and Volatility

NeurAxis has a beta of 4.26, indicating that its share price is 326% more volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Summary

IRIDEX beats NeurAxis on 7 of the 11 factors compared between the two stocks.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.

About IRIDEX

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.