Head to Head Contrast: Hyperfine (NASDAQ:HYPR) versus Nihon Kohden (OTCMKTS:NHNKY)

Nihon Kohden (OTCMKTS:NHNKY) and Hyperfine (NASDAQ:HYPR) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

0.1% of Nihon Kohden shares are held by institutional investors. Comparatively, 15.0% of Hyperfine shares are held by institutional investors. 31.0% of Hyperfine shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nihon Kohden and Hyperfine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nihon Kohden	0	0	0	0	0.00
Hyperfine	1	1	2	0	2.25

Hyperfine has a consensus price target of $1.28, indicating a potential upside of 23.40%. Given Hyperfine’s stronger consensus rating and higher possible upside, analysts clearly believe Hyperfine is more favorable than Nihon Kohden.

Earnings & Valuation

This table compares Nihon Kohden and Hyperfine”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nihon Kohden	$1.48 billion	1.21	$93.05 million	$0.73	14.41
Hyperfine	$12.89 million	7.84	-$40.72 million	($0.52)	-2.00

Nihon Kohden has higher revenue and earnings than Hyperfine. Hyperfine is trading at a lower price-to-earnings ratio than Nihon Kohden, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nihon Kohden and Hyperfine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nihon Kohden	5.77%	6.74%	4.96%
Hyperfine	-378.17%	-97.95%	-75.87%

Volatility and Risk

Nihon Kohden has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Hyperfine has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.