Nephros (NASDAQ:NEPH) & Capricor Therapeutics (NASDAQ:CAPR) Head-To-Head Survey

Nephros (NASDAQ:NEPH) and Capricor Therapeutics (NASDAQ:CAPR) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Insider and Institutional Ownership

41.1% of Nephros shares are owned by institutional investors. Comparatively, 21.7% of Capricor Therapeutics shares are owned by institutional investors. 6.7% of Nephros shares are owned by insiders. Comparatively, 9.2% of Capricor Therapeutics shares are owned by 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.

Profitability

This table compares Nephros and Capricor Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nephros	4.06%	7.66%	5.86%
Capricor Therapeutics	N/A	-59.27%	-48.65%

Analyst Ratings

This is a summary of current recommendations and price targets for Nephros and Capricor Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	1	1	0	2.50
Capricor Therapeutics	1	0	9	0	2.80

Nephros presently has a consensus target price of $6.00, suggesting a potential upside of 62.16%. Capricor Therapeutics has a consensus target price of $48.36, suggesting a potential upside of 66.14%. Given Capricor Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Capricor Therapeutics is more favorable than Nephros.

Risk & Volatility

Nephros has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Capricor Therapeutics has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nephros and Capricor Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$18.79 million	2.14	$1.19 million	$0.07	52.86
Capricor Therapeutics	$22.27 million	75.70	-$105.04 million	($2.32)	-12.55

Nephros has higher earnings, but lower revenue than Capricor Therapeutics. Capricor Therapeutics is trading at a lower price-to-earnings ratio than Nephros, indicating that it is currently the more affordable of the two stocks.

Summary

Nephros beats Capricor Therapeutics on 8 of the 14 factors compared between the two stocks.

About Nephros

Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.