Arch Therapeutics (OTCMKTS:ARTH) and Nemaura Medical (NASDAQ:NMRD) Critical Review

Arch Therapeutics (OTCMKTS:ARTHGet Rating) and Nemaura Medical (NASDAQ:NMRDGet Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares Arch Therapeutics and Nemaura Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arch Therapeutics $10,000.00 1,163.22 -$6.24 million N/A N/A
Nemaura Medical $500,000.00 98.82 -$13.89 million ($0.64) -3.20

Arch Therapeutics has higher earnings, but lower revenue than Nemaura Medical.

Insider and Institutional Ownership

0.0% of Arch Therapeutics shares are held by institutional investors. Comparatively, 3.5% of Nemaura Medical shares are held by institutional investors. 9.7% of Arch Therapeutics shares are held by insiders. Comparatively, 49.8% of Nemaura Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Arch Therapeutics and Nemaura Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Therapeutics 0 0 0 0 N/A
Nemaura Medical 0 0 1 0 3.00

Nemaura Medical has a consensus price target of $8.00, suggesting a potential upside of 290.24%. Given Nemaura Medical’s higher possible upside, analysts clearly believe Nemaura Medical is more favorable than Arch Therapeutics.

Risk and Volatility

Arch Therapeutics has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Nemaura Medical has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Profitability

This table compares Arch Therapeutics and Nemaura Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arch Therapeutics -35,372.46% N/A -223.22%
Nemaura Medical N/A -3,060.48% -71.26%

Summary

Nemaura Medical beats Arch Therapeutics on 7 of the 11 factors compared between the two stocks.

About Arch Therapeutics

(Get Rating)

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. The company develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. Its flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. The company was founded in 2006 and is based in Framingham, Massachusetts.

About Nemaura Medical

(Get Rating)

Nemaura Medical Inc., a medical technology company, discovers, develops, and commercializes diagnostic medical devices. It provides sugarBEAT, a non-invasive continuous glucose monitoring device for use by persons with Type I and Type II diabetes, as well as screen pre-diabetic patients. The company also offers proBEAT, a wellness guidance notes, that provide prompts and educate users on factors affecting blood sugar profiles, as well as conducts diabetes prevention and reversal programs. Nemaura Medical Inc. was founded in 2009 and is based in New York, New York.

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