Outset Medical (NASDAQ:OM) & QT Imaging (NASDAQ:QTI) Head to Head Contrast

QT Imaging (NASDAQ:QTI) and Outset Medical (NASDAQ:OM) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Risk & Volatility

QT Imaging has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for QT Imaging and Outset Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QT Imaging	0	0	0	0	N/A
Outset Medical	1	1	4	0	2.50

Outset Medical has a consensus target price of $5.42, indicating a potential upside of 53.88%. Given Outset Medical’s higher probable upside, analysts plainly believe Outset Medical is more favorable than QT Imaging.

Valuation and Earnings

This table compares QT Imaging and Outset Medical’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QT Imaging	N/A	N/A	-$4.03 million	N/A	N/A
Outset Medical	$125.08 million	1.46	-$172.80 million	($3.38)	-1.04

QT Imaging has higher earnings, but lower revenue than Outset Medical.

Institutional & Insider Ownership

24.2% of QT Imaging shares are owned by institutional investors. 75.4% of QT Imaging shares are owned by company insiders. Comparatively, 3.5% of Outset Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares QT Imaging and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QT Imaging	N/A	N/A	-19.75%
Outset Medical	-134.93%	-120.67%	-51.09%

Summary

QT Imaging beats Outset Medical on 6 of the 10 factors compared between the two stocks.

About QT Imaging

QT Imaging Holdings, Inc. engages in the research, development, and commercialization of body imaging systems for detection, diagnosis, monitoring, and treatment of diseases. The company offers QT Ultrasound Breast Scanner, an ultrasonic imaging system that provides reflection-mode and transmission-mode images of a patient's breast. QT Imaging Holdings, Inc. was founded in 2011 and is based in Novato, California.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.