Financial Comparison: NexGel (NASDAQ:NXGL) & Olympus (OTCMKTS:OCPNY)

NexGel (NASDAQ:NXGL) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

2.2% of NexGel shares are owned by institutional investors. Comparatively, 0.0% of Olympus shares are owned by institutional investors. 19.8% of NexGel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares NexGel and Olympus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexGel	$11.42 million	0.15	-$3.00 million	($14.20)	-0.25
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

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

Profitability

This table compares NexGel and Olympus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexGel	-51.26%	-121.18%	-41.15%
Olympus	13.80%	24.30%	9.30%

Analyst Ratings

This is a summary of recent ratings and recommmendations for NexGel and Olympus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexGel	1	2	0	0	1.67
Olympus	0	0	1	0	3.00

NexGel presently has a consensus price target of $40.00, indicating a potential upside of 1,022.96%. Given NexGel’s higher probable upside, analysts plainly believe NexGel is more favorable than Olympus.

Volatility & Risk

NexGel has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Summary

Olympus beats NexGel on 10 of the 14 factors compared between the two stocks.

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.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.