Critical Survey: CompuMed (OTCMKTS:CMPD) and Applied Digital (NASDAQ:APLD)

CompuMed (OTCMKTS:CMPD) and Applied Digital (NASDAQ:APLD) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings & Valuation

This table compares CompuMed and Applied Digital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompuMed	$5.84 million	0.37	-$30,000.00	($0.03)	-56.67
Applied Digital	$55.39 million	6.51	-$44.65 million	($0.79)	-3.72

CompuMed has higher earnings, but lower revenue than Applied Digital. CompuMed is trading at a lower price-to-earnings ratio than Applied Digital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CompuMed and Applied Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompuMed	-0.85%	-1.49%	-1.09%
Applied Digital	-61.84%	-75.46%	-20.50%

Volatility & Risk

CompuMed has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.12, indicating that its share price is 312% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for CompuMed and Applied Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompuMed	0	0	0	0	N/A
Applied Digital	0	0	5	0	3.00

Applied Digital has a consensus target price of $9.20, suggesting a potential upside of 212.93%. Given Applied Digital’s higher probable upside, analysts plainly believe Applied Digital is more favorable than CompuMed.

Insider and Institutional Ownership

65.7% of Applied Digital shares are owned by institutional investors. 22.0% of CompuMed shares are owned by insiders. Comparatively, 23.7% of Applied Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Applied Digital beats CompuMed on 8 of the 13 factors compared between the two stocks.

About CompuMed

CompuMed, Inc., an enterprise telemedicine solutions company, provides clinical care services for patients and medical facilities. It offers telecardiology and teleradiology services that provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities worldwide. The company also provides enterprise telemedicine solutions; a suite of telecardiology services and diagnostic exam interpretations for pediatric and adult patients, including electrocardiogram (ECG) devices, echocardiogram, ECG, vascular, holter, nuclear, and video consults; and reading, transcription, reporting, storage, and video consultations in the areas of Vscan, X-ray, ultrasound, mammography, computed tomography, magnetic resonance imaging, and radiologist video consults. It also offers OsteoGram software that works in combination with standard or digital X-ray equipment to support osteoporosis screening, diagnosis, and therapy monitoring. In addition, the company provides mobile ECG and ultrasound solutions that provide patients with immediate access to its board-certified specialists; and medical devices. It serves organ procurement organizations, rural healthcare, and correctional healthcare industries. CompuMed, Inc. was founded in 1973 and is headquartered in Los Angeles, California.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.