Contrasting Envista (NYSE:NVST) and Nephros (NASDAQ:NEPH)

Nephros (NASDAQ:NEPH) and Envista (NYSE:NVST) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

41.1% of Nephros shares are owned by institutional investors. 6.7% of Nephros shares are owned by insiders. Comparatively, 0.7% of Envista shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Nephros and Envista”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$18.79 million	1.76	$1.19 million	$0.11	28.27
Envista	$2.72 billion	1.56	$47.00 million	$0.28	92.27

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

Volatility & Risk

Nephros has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Envista has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Nephros and Envista’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nephros	6.35%	12.22%	9.38%
Envista	1.73%	6.54%	3.60%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nephros and Envista, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	1	1	0	2.50
Envista	0	7	7	1	2.60

Nephros currently has a consensus price target of $6.00, suggesting a potential upside of 92.93%. Envista has a consensus price target of $27.75, suggesting a potential upside of 7.41%. Given Nephros’ higher probable upside, analysts plainly believe Nephros is more favorable than Envista.

Summary

Nephros beats Envista on 8 of the 15 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 Envista

Envista Holdings Corporation, together with its subsidiaries, develops, manufactures, markets, and sells dental products in the United States, China, and internationally. The company operates in two segments, Specialty Products & Technologies, and Equipment & Consumables. The Specialty Products & Technologies segment offers dental implant systems, guided surgery systems, biomaterials, and prefabricated and custom-built prosthetics to oral surgeons, prosthodontists and periodontists, and general dentist; and brackets and wires, tubes and bands, archwires, clear aligners, digital orthodontic treatments, retainers, and other orthodontic laboratory products. This segment also provides software packages, which include DTX Studio Implant; DTX Studio Lab; and DTX Studio Clinic, a software package offered with its imaging products. It offers its products under the Nobel Biocare, Alpha-Bio Tec, Implant Direct, Nobel Procera, Ormco, Spark, Orascoptic, Damon, Insignia, AOA brands. The Equipment & Consumables segment provides dental equipment and supplies, including digital imaging systems, software, and other visualization/magnification systems; endodontic systems and related products; restorative materials, rotary burs, impression materials, bonding agents, and cements; and infection prevention products. This segment offers its products under the Dexis, DTX Studio, Kerr, Metrex, Total Care, Pentron, Optibond, Harmonize, Sonicfill, Sybron Endo, and CaviWipes to dental offices, clinics, and hospitals. Envista Holdings Corporation was incorporated in 2018 and is headquartered in Brea, California.