Pulse Biosciences (NASDAQ:PLSE) and Spectral Medical (OTCMKTS:EDTXF) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Pulse Biosciences and Spectral Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pulse Biosciences N/A -80.93% -73.54%
Spectral Medical -57.58% -38.95% -33.91%

Valuation and Earnings

This table compares Pulse Biosciences and Spectral Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pulse Biosciences N/A N/A -$37.54 million ($2.20) -6.08
Spectral Medical $2.96 million 22.12 -$1.92 million N/A N/A

Spectral Medical has higher revenue and earnings than Pulse Biosciences.

Volatility and Risk

Pulse Biosciences has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Spectral Medical has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Pulse Biosciences and Spectral Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pulse Biosciences 0 0 1 0 3.00
Spectral Medical 0 0 0 0 N/A

Pulse Biosciences presently has a consensus target price of $27.00, suggesting a potential upside of 101.79%. Given Pulse Biosciences’ higher possible upside, equities analysts clearly believe Pulse Biosciences is more favorable than Spectral Medical.

Insider and Institutional Ownership

9.9% of Pulse Biosciences shares are held by institutional investors. 48.6% of Pulse Biosciences shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Pulse Biosciences beats Spectral Medical on 6 of the 10 factors compared between the two stocks.

About Pulse Biosciences

Pulse Biosciences, Inc. operates as a clinical stage medical therapy company. It engages in the research and development, and commercialization of CellFX system that provides a precise and non-thermal cellular treatment technology delivering nanosecond duration energy pulses that impact cells in treated tissue while sparing surrounding non-cellular tissue primarily for dermatology applications. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was founded in 2014 and is headquartered in Hayward, California.

About Spectral Medical

Spectral Medical Inc. focuses on the development and commercialization of treatment for septic shock in North America. The company markets Endotoxin Activity Assay, a rapid diagnostic test for the detection of components of gram negative bacterial cell wall in Europe and Canada; and Toraymyxin, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream in Europe, Canada, and Japan. It also develops, produces, and markets recombinant proteins, antibodies, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops continuous renal replacement therapy, an open platform for other hemoperfusion cartridges. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was founded in 1991 and is headquartered in Toronto, Canada.

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