Critical Review: Nemaura Medical (OTCMKTS:NMRD) and InfuSystem (NYSE:INFU)

InfuSystem (NYSE:INFU) and Nemaura Medical (OTCMKTS:NMRD) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk & Volatility

InfuSystem has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Nemaura Medical has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares InfuSystem and Nemaura Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InfuSystem	1.12%	2.78%	1.41%
Nemaura Medical	N/A	N/A	N/A

Insider & Institutional Ownership

71.1% of InfuSystem shares are owned by institutional investors. Comparatively, 4.4% of Nemaura Medical shares are owned by institutional investors. 11.4% of InfuSystem shares are owned by company insiders. Comparatively, 40.4% of Nemaura Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for InfuSystem and Nemaura Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InfuSystem	0	1	2	2	3.20
Nemaura Medical	0	0	0	0	0.00

InfuSystem presently has a consensus target price of $15.00, indicating a potential upside of 54.96%. Given InfuSystem’s stronger consensus rating and higher possible upside, research analysts plainly believe InfuSystem is more favorable than Nemaura Medical.

Valuation and Earnings

This table compares InfuSystem and Nemaura Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InfuSystem	$143.44 million	1.36	$870,000.00	$0.32	30.25
Nemaura Medical	$80,000.00	0.00	-$14.14 million	($0.50)	N/A

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

Summary

InfuSystem beats Nemaura Medical on 12 of the 13 factors compared between the two stocks.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

About Nemaura Medical

Nemaura Medical Inc., a medical technology company, manufactures continuous glucose monitoring system in the United States. It offers sugarBEAT, a non-invasive continuous glucose monitoring device for use by persons with Type I and Type II diabetes, as well as screen pre-diabetic patients. The company also offers proBEAT, a wellness guidance notes, that provide prompts and educate users on factors affecting blood sugar profiles, as well as conducts diabetes prevention and reversal programs. Nemaura Medical Inc. was founded in 2009 and is based in New York, New York.