Critical Analysis: Biodesix (NASDAQ:BDSX) versus NeuroOne Medical Technologies (NASDAQ:NMTC)

NeuroOne Medical Technologies (NASDAQ:NMTC) and Biodesix (NASDAQ:BDSX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Earnings & Valuation

This table compares NeuroOne Medical Technologies and Biodesix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroOne Medical Technologies	$3.45 million	9.93	-$12.32 million	($0.22)	-3.13
Biodesix	$71.32 million	0.57	-$42.93 million	($0.29)	-0.95

NeuroOne Medical Technologies has higher earnings, but lower revenue than Biodesix. NeuroOne Medical Technologies is trading at a lower price-to-earnings ratio than Biodesix, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

NeuroOne Medical Technologies has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Biodesix has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

16.1% of NeuroOne Medical Technologies shares are held by institutional investors. Comparatively, 21.0% of Biodesix shares are held by institutional investors. 8.9% of NeuroOne Medical Technologies shares are held by insiders. Comparatively, 30.1% of Biodesix shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares NeuroOne Medical Technologies and Biodesix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroOne Medical Technologies	-75.41%	-334.64%	-124.42%
Biodesix	-54.28%	-167.28%	-39.96%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NeuroOne Medical Technologies and Biodesix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroOne Medical Technologies	0	0	1	0	3.00
Biodesix	0	1	4	0	2.80

NeuroOne Medical Technologies currently has a consensus target price of $1.45, indicating a potential upside of 110.88%. Biodesix has a consensus target price of $1.75, indicating a potential upside of 533.60%. Given Biodesix’s higher possible upside, analysts plainly believe Biodesix is more favorable than NeuroOne Medical Technologies.

Summary

Biodesix beats NeuroOne Medical Technologies on 10 of the 14 factors compared between the two stocks.

About NeuroOne Medical Technologies

NeuroOne Medical Technologies Corporation, a developmental stage company, provides solutions for EEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson’s disease, dystonia, essential tremors, and chronic pain due to failed back surgeries and other related neurological disorders. It also fucuses on applications for other areas, such as depression, mood disorders, pain, incontinence, high blood pressure, and artificial intelligence. It has a strategic partnership with RBC Medical Innovations to develop a radio frequency ablation generator. The company was incorporated in 2009 and is based in Eden Prairie, Minnesota.

About Biodesix

Biodesix, Inc. operates as a data-driven diagnostic solutions company in the United States. The company offers blood-based lung tests, including Nodify XL2 and Nodify CDT tests, together marketed as part of Nodify Lung Nodule Risk Assessment testing strategy, to assess the risk of lung cancer and help in identifying the appropriate treatment pathway and help physicians in reclassifying risk of malignancy in patients with suspicious lung nodules. It also provides GeneStrat ddPCR and NGS, and VeriStrat tests, which are used in the diagnosis of lung cancer to measure the presence of mutations in the tumor and the state of the patient's immune system to establish the patient's prognosis and help guide treatment decisions. In addition, the company, through its partnership with Bio-Rad Laboratories, Inc., provides Bio-Rad SARS-CoV-2 ddPCR, a COVID-19 Test under Biodesix WorkSafe testing program; and Platelia SARS-CoV-2 Total Ab test, an antibody test for detecting a B-cell immune response to SARS-CoV-2 that indicate recent or prior infection. Further, it offers diagnostic and clinical research, as well as clinical trial testing services to biopharmaceutical companies; and discovers, develops, and commercializes companion diagnostics. The company was formerly known as Elston Technologies, Inc. and as changed to Biodesix, Inc. in 2006. Biodesix, Inc. was incorporated in 2005 and is headquartered in Louisville, Colorado.