Zynex (OTCMKTS: ZYXI) and Arch Therapeutics (OTCMKTS:ARTH) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
This table compares Zynex and Arch Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Zynex and Arch Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arch Therapeutics has a consensus target price of $3.00, suggesting a potential upside of 809.09%. Given Arch Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Arch Therapeutics is more favorable than Zynex.
Insider & Institutional Ownership
0.0% of Zynex shares are owned by institutional investors. Comparatively, 0.0% of Arch Therapeutics shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Zynex has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Arch Therapeutics has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Valuation and Earnings
This table compares Zynex and Arch Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zynex||$23.43 million||5.40||$7.36 million||$0.23||16.96|
|Arch Therapeutics||N/A||N/A||-$7.78 million||($0.04)||-8.25|
Zynex has higher revenue and earnings than Arch Therapeutics. Arch Therapeutics is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Zynex beats Arch Therapeutics on 9 of the 12 factors compared between the two stocks.
Zynex Company Profile
Zynex, Inc., a medical technology company, designs, manufactures, and markets electrotherapy medical devices used for pain management and rehabilitation. Its products include NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation device; NeuroMove, an electromyography triggered electrical stimulation device; and InWave, an electrical stimulation product for the treatment of female urinary incontinence. The company also distributes private labeled products, such as electrodes for the delivery of electrical current to the body; batteries for use in electrotherapy products; Comfortrac for cervical traction; JetStream for hot/cold therapy; and LSO Back Braces for lumbar support. In addition, it develops non-invasive blood volume monitors for use in hospitals and surgery centers. The company offers its products for pain management and control; and stroke and spinal cord injury rehabilitation. It sells its products through direct and independent sales representatives primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.
Arch Therapeutics Company Profile
Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.
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