Head-To-Head Analysis: Teleflex (NYSE:TFX) & NexGel (NASDAQ:NXGL)

NexGel (NASDAQ:NXGL) and Teleflex (NYSE:TFX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for NexGel and Teleflex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexGel	1	0	0	0	1.00
Teleflex	2	9	1	0	1.92

Teleflex has a consensus price target of $142.43, indicating a potential upside of 17.04%. Given Teleflex’s stronger consensus rating and higher probable upside, analysts clearly believe Teleflex is more favorable than NexGel.

Volatility and Risk

NexGel has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Teleflex has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

2.2% of NexGel shares are owned by institutional investors. Comparatively, 95.6% of Teleflex shares are owned by institutional investors. 20.6% of NexGel shares are owned by insiders. Comparatively, 1.4% of Teleflex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares NexGel and Teleflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexGel	-24.69%	-47.35%	-24.67%
Teleflex	-10.28%	15.64%	8.71%

Valuation & Earnings

This table compares NexGel and Teleflex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexGel	$8.69 million	1.47	-$3.28 million	($0.37)	-4.24
Teleflex	$3.05 billion	1.76	$69.68 million	($7.35)	-16.56

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

Summary

Teleflex beats NexGel on 11 of the 14 factors compared between the two stocks.

About NexGel

NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.