Owlet (NYSE:OWLT – Get Free Report) and Pulmonx (NASDAQ:LUNG – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional & Insider Ownership
72.6% of Owlet shares are owned by institutional investors. Comparatively, 91.0% of Pulmonx shares are owned by institutional investors. 36.2% of Owlet shares are owned by insiders. Comparatively, 7.5% of Pulmonx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Owlet and Pulmonx”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Owlet | $105.70 million | 1.30 | -$39.68 million | ($0.75) | -6.29 |
| Pulmonx | $90.50 million | 0.87 | -$54.00 million | ($1.16) | -1.59 |
Owlet has higher revenue and earnings than Pulmonx. Owlet is trading at a lower price-to-earnings ratio than Pulmonx, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Owlet has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Owlet and Pulmonx, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Owlet | 1 | 1 | 3 | 0 | 2.40 |
| Pulmonx | 1 | 0 | 3 | 0 | 2.50 |
Owlet presently has a consensus target price of $15.00, indicating a potential upside of 217.80%. Pulmonx has a consensus target price of $7.67, indicating a potential upside of 316.67%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts plainly believe Pulmonx is more favorable than Owlet.
Profitability
This table compares Owlet and Pulmonx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Owlet | -8.61% | -601.24% | -15.96% |
| Pulmonx | -55.03% | -96.66% | -38.32% |
Summary
Owlet beats Pulmonx on 8 of the 13 factors compared between the two stocks.
About Owlet
Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.
About Pulmonx
Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
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