Reviewing Senestech (NASDAQ:SNES) and Zynex (NASDAQ:ZYXI)

Zynex (NASDAQ:ZYXI) and Senestech (NASDAQ:SNES) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Insider & Institutional Ownership

29.7% of Zynex shares are owned by institutional investors. Comparatively, 5.2% of Senestech shares are owned by institutional investors. 49.3% of Zynex shares are owned by insiders. Comparatively, 2.2% of Senestech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Zynex and Senestech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zynex	1	0	0	0	1.00
Senestech	1	1	0	1	2.33

Profitability

This table compares Zynex and Senestech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zynex	-68.35%	-804.30%	-36.67%
Senestech	-304.22%	-67.60%	-49.21%

Valuation & Earnings

This table compares Zynex and Senestech”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05
Senestech	$2.23 million	3.21	-$6.38 million	($1.89)	-0.71

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

Risk & Volatility

Zynex has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Senestech has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Summary

Zynex beats Senestech on 8 of the 13 factors compared between the two stocks.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.