Reviewing NeurAxis (NASDAQ:NRXS) and Zynex (NASDAQ:ZYXI)

NeurAxis (NASDAQ:NRXS) and Zynex (NASDAQ:ZYXI) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

11.8% of NeurAxis shares are owned by institutional investors. Comparatively, 29.7% of Zynex shares are owned by institutional investors. 15.2% of NeurAxis shares are owned by company insiders. Comparatively, 52.1% of Zynex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NeurAxis and Zynex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeurAxis	$2.46 million	6.75	-$14.63 million	($1.84)	-1.26
Zynex	$193.67 million	1.18	$9.73 million	$0.15	47.93

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

Analyst Recommendations

This is a summary of current recommendations and price targets for NeurAxis and Zynex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeurAxis	0	0	0	0	0.00
Zynex	0	0	2	0	3.00

Zynex has a consensus price target of $14.00, indicating a potential upside of 94.71%. Given Zynex’s stronger consensus rating and higher probable upside, analysts clearly believe Zynex is more favorable than NeurAxis.

Profitability

This table compares NeurAxis and Zynex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeurAxis	-492.76%	N/A	-641.25%
Zynex	2.49%	13.05%	3.78%

Volatility & Risk

NeurAxis has a beta of 4.22, indicating that its stock price is 322% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

Zynex beats NeurAxis on 12 of the 14 factors compared between the two stocks.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.