Analyzing Pulmonx (NASDAQ:LUNG) and UFP Technologies (NASDAQ:UFPT)

Pulmonx (NASDAQ:LUNG) and UFP Technologies (NASDAQ:UFPT) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Pulmonx and UFP Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-55.03%	-96.66%	-38.32%
UFP Technologies	11.45%	18.42%	11.96%

Analyst Ratings

This is a breakdown of current recommendations for Pulmonx and UFP Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	0	3	0	2.50
UFP Technologies	0	2	0	0	2.00

Pulmonx presently has a consensus target price of $7.67, indicating a potential upside of 330.71%. Given Pulmonx’s stronger consensus rating and higher possible upside, equities analysts clearly believe Pulmonx is more favorable than UFP Technologies.

Volatility and Risk

Pulmonx has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

91.0% of Pulmonx shares are owned by institutional investors. Comparatively, 87.3% of UFP Technologies shares are owned by institutional investors. 7.5% of Pulmonx shares are owned by insiders. Comparatively, 4.6% of UFP Technologies 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.

Earnings and Valuation

This table compares Pulmonx and UFP Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$87.44 million	0.87	-$54.00 million	($1.16)	-1.53
UFP Technologies	$602.80 million	3.75	$68.31 million	$9.28	31.43

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

Summary

UFP Technologies beats Pulmonx on 9 of the 14 factors compared between the two stocks.

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.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.