Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) and NexGel (NASDAQ:NXGL – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Analyst Recommendations
This is a breakdown of current recommendations for Treace Medical Concepts and NexGel, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Treace Medical Concepts | 2 | 4 | 1 | 0 | 1.86 |
| NexGel | 1 | 1 | 0 | 0 | 1.50 |
Treace Medical Concepts presently has a consensus price target of $5.17, suggesting a potential upside of 13.93%. NexGel has a consensus price target of $2.00, suggesting a potential upside of 622.02%. Given NexGel’s higher probable upside, analysts clearly believe NexGel is more favorable than Treace Medical Concepts.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Treace Medical Concepts | $212.69 million | 1.39 | -$59.00 million | ($0.93) | -4.88 |
| NexGel | $11.42 million | 0.24 | -$3.00 million | ($0.71) | -0.39 |
NexGel has lower revenue, but higher earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than NexGel, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Treace Medical Concepts and NexGel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Treace Medical Concepts | -28.99% | -71.37% | -30.49% |
| NexGel | -51.26% | -121.18% | -41.15% |
Volatility & Risk
Treace Medical Concepts has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, NexGel has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 2.2% of NexGel shares are held by institutional investors. 23.4% of Treace Medical Concepts shares are held by company insiders. Comparatively, 19.8% of NexGel shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Treace Medical Concepts beats NexGel on 10 of the 14 factors compared between the two stocks.
About Treace Medical Concepts
Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.
About NexGel
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
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