NexGel (NASDAQ:NXGL – Get Free Report) and Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
Analyst Ratings
This is a summary of current recommendations and price targets for NexGel and Treace Medical Concepts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexGel | 1 | 1 | 0 | 0 | 1.50 |
| Treace Medical Concepts | 2 | 4 | 1 | 0 | 1.86 |
NexGel currently has a consensus target price of $2.00, indicating a potential upside of 572.72%. Treace Medical Concepts has a consensus target price of $5.17, indicating a potential upside of 11.66%. Given NexGel’s higher possible upside, analysts plainly believe NexGel is more favorable than Treace Medical Concepts.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NexGel | -51.26% | -121.18% | -41.15% |
| Treace Medical Concepts | -28.99% | -71.37% | -30.49% |
Risk and Volatility
NexGel has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Earnings and Valuation
This table compares NexGel and Treace Medical Concepts”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexGel | $12.07 million | 0.24 | -$3.00 million | ($0.71) | -0.42 |
| Treace Medical Concepts | $205.31 million | 1.47 | -$59.00 million | ($0.93) | -4.98 |
NexGel has higher earnings, but lower revenue than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than NexGel, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
2.2% of NexGel shares are held by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are held by institutional investors. 19.8% of NexGel shares are held by company insiders. Comparatively, 23.4% of Treace Medical Concepts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Treace Medical Concepts beats NexGel on 10 of the 14 factors compared between the two stocks.
About NexGel
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
About Treace Medical Concepts
Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.
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