Financial Analysis: Pulmonx (NASDAQ:LUNG) & MDxHealth (NASDAQ:MDXH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-62.88%	-69.76%	-36.26%
MDxHealth	-34.98%	-374.98%	-21.97%

Institutional and Insider Ownership

91.0% of Pulmonx shares are owned by institutional investors. 6.8% of Pulmonx shares are owned by company insiders. Comparatively, 1.7% of MDxHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Pulmonx and MDxHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	4	5	0	2.40
MDxHealth	1	0	2	0	2.33

Pulmonx presently has a consensus target price of $6.81, indicating a potential upside of 300.42%. MDxHealth has a consensus target price of $7.00, indicating a potential upside of 48.31%. Given Pulmonx’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pulmonx is more favorable than MDxHealth.

Risk & Volatility

Pulmonx has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, MDxHealth has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Valuation & Earnings

This table compares Pulmonx and MDxHealth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$83.79 million	0.83	-$56.39 million	($1.43)	-1.19
MDxHealth	$98.95 million	2.26	-$38.07 million	($0.88)	-5.36

MDxHealth has higher revenue and earnings than Pulmonx. MDxHealth is trading at a lower price-to-earnings ratio than Pulmonx, 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 MDxHealth

MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, Europe, and internationally. Its testing solutions includes Select mdx, a non-invasive urine test for prostate cancer that measures the expression of two mRNA cancer-related biomarkers; Confirm mdx for prostate cancer tissue test that validates epigenetic test that guides the detection of occult prostate cancer on a patient's previously biopsied negative tissue; and Resolved mdx for urinary tract infection that identifies personalized effective antibiotic options against the patient's infection. The company offers genomic prostate score which provides personalized genomic insights to both physicians and patients navigating the complexities of prostate cancer diagnosis and treatment. It sells its products through urology sales force, consisting of direct sales representatives, strategic account managers, and regional sales managers. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.