Westaim (OTCMKTS:WEDXF) versus Pulmonx (NASDAQ:LUNG) Financial Survey

Pulmonx (NASDAQ:LUNG) and Westaim (OTCMKTS:WEDXF) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pulmonx and Westaim, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	0	2	4	0	2.67
Westaim	0	0	0	0	0.00

Pulmonx presently has a consensus target price of $12.75, suggesting a potential upside of 87.78%. Given Pulmonx’s stronger consensus rating and higher probable upside, equities analysts plainly believe Pulmonx is more favorable than Westaim.

Volatility and Risk

Pulmonx has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Westaim has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Insider and Institutional Ownership

91.0% of Pulmonx shares are owned by institutional investors. 5.7% of Pulmonx shares are owned by insiders. Comparatively, 4.2% of Westaim shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Pulmonx and Westaim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-72.01%	-53.88%	-33.47%
Westaim	284.74%	7.76%	7.29%

Earnings & Valuation

This table compares Pulmonx and Westaim”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$79.30 million	3.38	-$60.84 million	($1.47)	-4.62
Westaim	$8.63 million	53.17	$183.98 million	$0.29	12.35

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

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

About Westaim

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.