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

Analyst Recommendations

This is a breakdown of current ratings and price targets for ENDRA Life Sciences and IRIDEX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENDRA Life Sciences 0 0 0 0 N/A
IRIDEX 0 0 2 0 3.00

IRIDEX has a consensus price target of $8.50, suggesting a potential upside of 83.98%. Given IRIDEX’s higher possible upside, analysts clearly believe IRIDEX is more favorable than ENDRA Life Sciences.

Profitability

This table compares ENDRA Life Sciences and IRIDEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENDRA Life Sciences N/A -360.26% -249.53%
IRIDEX -30.08% -44.86% -32.53%

Insider and Institutional Ownership

18.7% of ENDRA Life Sciences shares are owned by institutional investors. Comparatively, 45.3% of IRIDEX shares are owned by institutional investors. 12.7% of ENDRA Life Sciences shares are owned by company insiders. Comparatively, 4.8% of IRIDEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares ENDRA Life Sciences and IRIDEX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENDRA Life Sciences $10,000.00 1,001.13 -$9.80 million N/A N/A
IRIDEX $42.60 million 1.48 -$12.81 million ($1.05) -4.40

ENDRA Life Sciences has higher earnings, but lower revenue than IRIDEX.

Volatility & Risk

ENDRA Life Sciences has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

IRIDEX beats ENDRA Life Sciences on 7 of the 11 factors compared between the two stocks.

About ENDRA Life Sciences

ENDRA Life Sciences Inc. develops medical imaging technology based on the thermos-acoustic effect that improves the sensitivity and specificity of clinical ultrasound. It offers diagnostic imaging technologies, such as computed tomography, magnetic resonance imaging, and ultrasound that allow physicians to look inside a person's body to guide treatment or gather information about medical conditions, such as broken bones, cancers, signs of heart disease, or internal bleeding. It also offers Nexus-128 system that combines light-based thermos-acoustics and ultrasound to address the imaging needs of researchers studying disease models in pre-clinical applications. ENDRA Life Sciences Inc. has collaborative research agreement with General Electric Company. The company was incorporated in 2007 and is based in Ann Arbor, Michigan.

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. The company 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 diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser systems, which are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. It also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; and slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures. In addition, the company offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system that delivers laser to treat glaucoma; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe Illuminate and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products used in vitrectomy procedures. It serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, and office clinics. IRIDEX Corporation 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 founded in 1989 and is headquartered in Mountain View, California.

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