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Reviewing Alpha Tau Medical (NASDAQ:DRTS) and Nephros (NASDAQ:NEPH)

Defense World ·  Feb 7, 2023 01:43

Alpha Tau Medical (NASDAQ:DRTS – Get Rating) and Nephros (NASDAQ:NEPH – Get Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Alpha Tau Medical and Nephros' net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Alpha Tau Medical N/A -49.72% -33.76%
Nephros -71.25% -42.99% -36.30%

Volatility and Risk

Alpha Tau Medical has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Nephros has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alpha Tau Medical and Nephros' revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alpha Tau Medical N/A N/A -$27.27 million N/A N/A
Nephros $10.32 million 1.16 -$4.11 million ($0.74) -1.57

Nephros has higher revenue and earnings than Alpha Tau Medical.

Analyst Ratings

This is a summary of recent ratings for Alpha Tau Medical and Nephros, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alpha Tau Medical 0 0 3 0 3.00
Nephros 0 1 1 0 2.50

Alpha Tau Medical currently has a consensus price target of $17.67, suggesting a potential upside of 378.77%. Nephros has a consensus price target of $5.25, suggesting a potential upside of 352.59%. Given Alpha Tau Medical's stronger consensus rating and higher possible upside, equities analysts clearly believe Alpha Tau Medical is more favorable than Nephros.

Insider and Institutional Ownership

1.0% of Alpha Tau Medical shares are owned by institutional investors. Comparatively, 42.1% of Nephros shares are owned by institutional investors. 39.5% of Alpha Tau Medical shares are owned by company insiders. Comparatively, 8.6% of Nephros shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Alpha Tau Medical beats Nephros on 6 of the 11 factors compared between the two stocks.

About Alpha Tau Medical

(Get Rating)

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, and breast cancers; and preclinical studies for hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

About Nephros

(Get Rating)

Nephros, Inc. is a medical device company, which engages in developing and selling liquid purification filters and an on-line mid dilution hemodiafiltration system. The company operates in two segments: Water Filtration, Pathogen Detection and Renal Products. The Water Filtration segment includes both the medical device and commercial filtration product lines. The Pathogen Detection segment develops and sells portable, real-time water testing systems designed to provide actionable data on waterborne pathogens in approximately one hour. The Renal Products segment consists of SRP, which is focused on the development of medical device products for patients with renal disease, including a second-generation HDF system for the treatment of patients with ESRD. Its ultrafilters are used in dialysis centers for the removal of biological contaminants from water, bicarbonate concentrate, and blood. The company was founded on April 3, 1997 and is headquartered in South Orange, NJ.

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