Outset Medical (NASDAQ:OM – Get Free Report) and Precipio (NASDAQ:PRPO – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Profitability
This table compares Outset Medical and Precipio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outset Medical | -82.06% | -97.17% | -32.84% |
| Precipio | -8.48% | -15.00% | -10.21% |
Analyst Recommendations
This is a summary of recent ratings for Outset Medical and Precipio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outset Medical | 1 | 1 | 1 | 1 | 2.50 |
| Precipio | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
10.5% of Precipio shares are held by institutional investors. 2.4% of Outset Medical shares are held by company insiders. Comparatively, 16.9% of Precipio shares are held 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.
Valuation & Earnings
This table compares Outset Medical and Precipio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outset Medical | $113.69 million | 2.26 | -$127.98 million | ($20.29) | -0.71 |
| Precipio | $18.53 million | 1.84 | -$4.29 million | ($1.19) | -17.69 |
Precipio has lower revenue, but higher earnings than Outset Medical. Precipio is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Outset Medical has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Summary
Outset Medical beats Precipio on 8 of the 15 factors compared between the two stocks.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.
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