Critical Contrast: Nutex Health (NASDAQ:NUTX) and Sera Prognostics (NASDAQ:SERA)

Sera Prognostics (NASDAQ:SERA) and Nutex Health (NASDAQ:NUTX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Sera Prognostics and Nutex Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sera Prognostics	1	0	1	1	2.67
Nutex Health	0	2	3	0	2.60

Sera Prognostics presently has a consensus target price of $5.50, suggesting a potential upside of 168.29%. Nutex Health has a consensus target price of $243.33, suggesting a potential upside of 35.52%. Given Sera Prognostics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Sera Prognostics is more favorable than Nutex Health.

Insider and Institutional Ownership

54.6% of Sera Prognostics shares are owned by institutional investors. Comparatively, 5.3% of Nutex Health shares are owned by institutional investors. 11.3% of Sera Prognostics shares are owned by insiders. Comparatively, 44.7% of Nutex Health 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 & Valuation

This table compares Sera Prognostics and Nutex Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sera Prognostics	$80,000.00	1,003.47	-$31.93 million	($0.65)	-3.15
Nutex Health	$875.26 million	1.41	$70.79 million	$12.94	13.88

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

Volatility & Risk

Sera Prognostics has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Nutex Health has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares Sera Prognostics and Nutex Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sera Prognostics	-56,385.97%	-41.02%	-30.95%
Nutex Health	10.95%	23.50%	10.47%

Summary

Nutex Health beats Sera Prognostics on 9 of the 15 factors compared between the two stocks.

About Sera Prognostics

Sera Prognostics, Inc., a women's health diagnostic company, discovers, develops, and commercializes biomarker tests for improving pregnancy outcomes in the United States. The company develops PreTRM test, a blood-based biomarker test to predict the risk of spontaneous preterm birth in singleton pregnancies. It is also developing a portfolio of product candidates for various pregnancy-related conditions, including preterm birth, preeclampsia, molecular time-to-birth, predictive analytics, gestational diabetes mellitus, fetal growth restriction, stillbirth, and postpartum depression. The company was incorporated in 2008 and is headquartered in Salt Lake City, Utah.

About Nutex Health

Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.