NEXGEL (NASDAQ:NXGL) vs. ResMed (NYSE:RMD) Head-To-Head Review

ResMed (NYSE:RMD) and NEXGEL (NASDAQ:NXGL) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ResMed and NEXGEL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	0	5	6	0	2.55
NEXGEL	0	0	0	0	N/A

ResMed presently has a consensus target price of $204.70, indicating a potential downside of 16.41%. Given ResMed’s higher probable upside, research analysts plainly believe ResMed is more favorable than NEXGEL.

Volatility and Risk

ResMed has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Institutional and Insider Ownership

55.0% of ResMed shares are owned by institutional investors. Comparatively, 2.2% of NEXGEL shares are owned by institutional investors. 1.2% of ResMed shares are owned by insiders. Comparatively, 27.2% of NEXGEL shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ResMed and NEXGEL’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ResMed	$4.69 billion	7.68	$1.02 billion	$6.51	37.62
NEXGEL	$5.01 million	3.49	-$3.16 million	($0.55)	-5.11

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

Profitability

This table compares ResMed and NEXGEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ResMed	21.79%	25.00%	16.67%
NEXGEL	-67.80%	-64.21%	-33.91%

Summary

ResMed beats NEXGEL on 11 of the 13 factors compared between the two stocks.

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. The company was founded in 1989 and is headquartered in San Diego, California.

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.