Financial Analysis: Nano-X Imaging (NASDAQ:NNOX) versus Owlet (NYSE:OWLT)

Nano-X Imaging (NASDAQ:NNOX) and Owlet (NYSE:OWLT) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Volatility and Risk

Nano-X Imaging has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Owlet has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nano-X Imaging and Owlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano-X Imaging	1	2	2	1	2.50
Owlet	1	1	3	0	2.40

Nano-X Imaging presently has a consensus price target of $4.33, suggesting a potential upside of 392.42%. Owlet has a consensus price target of $15.00, suggesting a potential upside of 189.35%. Given Nano-X Imaging’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nano-X Imaging is more favorable than Owlet.

Profitability

This table compares Nano-X Imaging and Owlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano-X Imaging	-716.44%	-70.96%	-62.26%
Owlet	-8.61%	-601.24%	-15.96%

Insider & Institutional Ownership

21.5% of Nano-X Imaging shares are owned by institutional investors. Comparatively, 72.6% of Owlet shares are owned by institutional investors. 7.7% of Nano-X Imaging shares are owned by company insiders. Comparatively, 36.2% of Owlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nano-X Imaging and Owlet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano-X Imaging	$14.52 million	4.76	-$75.02 million	($1.58)	-0.56
Owlet	$105.70 million	1.43	-$39.68 million	($0.75)	-6.91

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

Summary

Owlet beats Nano-X Imaging on 9 of the 15 factors compared between the two stocks.

About Nano-X Imaging

Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The company provides teleradiology services and develops artificial intelligence applications to be used in real-world medical imaging applications. Its X-ray source is based on a digital micro-electro-mechanical systems semiconductor cathode. The company's solutions include Nanox Multi Source System comprising Nanox.ARC, a medical tomographic imaging system incorporating its digital X-ray source, and Nanox. CLOUD, a platform which employs a matching engine to match medical images to radiologists that provides image repository, connectivity to diagnostic assistive AI systems, billing, and reporting. It also offers Nanox.MARKETPLACE, which connects imaging facilities with radiologists and enables radiologists to provide, as well as customers to obtain remote interpretations of imaging data; artificial intelligence (AI)-based software imaging solutions to hospitals, health maintenance organizations, integrated delivery networks, pharmaceutical companies, and insurers that are designed to identify or predict undiagnosed or underdiagnosed medical conditions through the mining of data included in images of existing computed tomography scans for osteoporosis and cardiovascular disease; Teleradiology Services, which provide imaging interpretation services for radiology practices, hospitals, medical clinics, diagnostic imaging centers, urgent care facilities; and multi-specialty physician groups, contracts, and radiology readings. The company is headquartered in Petach Tikva, Israel.

About Owlet

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.