MariMed (OTCMKTS:MRMD) and Nephros (NASDAQ:NEPH) Critical Review

Nephros (NASDAQ:NEPH) and MariMed (OTCMKTS:MRMD) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

41.1% of Nephros shares are owned by institutional investors. Comparatively, 0.2% of MariMed shares are owned by institutional investors. 6.7% of Nephros shares are owned by insiders. Comparatively, 16.1% of MariMed 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.

Volatility & Risk

Nephros has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, MariMed has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nephros	8.38%	10.60%	8.05%
MariMed	-9.13%	-10.71%	-2.58%

Analyst Ratings

This is a summary of recent recommendations for Nephros and MariMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	3	1	0	2.25
MariMed	0	2	0	0	2.00

Nephros currently has a consensus price target of $4.00, indicating a potential upside of 13.31%. Given Nephros’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Nephros is more favorable than MariMed.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$18.79 million	2.04	$1.19 million	$0.16	22.06
MariMed	$159.83 million	0.16	-$14.48 million	($0.04)	-1.58

Nephros has higher earnings, but lower revenue than MariMed. MariMed 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 MariMed on 12 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 MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature’s Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby’s Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty’s Eddies brand and ice creams under Emack & Bolio’s brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.