Analyzing Outset Medical (NASDAQ:OM) and Alternate Health (OTCMKTS:AHGIF)

Outset Medical (NASDAQ:OM) and Alternate Health (OTCMKTS:AHGIF) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Outset Medical and Alternate Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outset Medical	-73.12%	-71.37%	-30.11%
Alternate Health	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Outset Medical and Alternate Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outset Medical	1	1	2	1	2.60
Alternate Health	0	0	0	0	0.00

Outset Medical currently has a consensus target price of $10.67, indicating a potential upside of 126.95%. Given Outset Medical’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Outset Medical is more favorable than Alternate Health.

Valuation and Earnings

This table compares Outset Medical and Alternate Health”s gross 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	0.75	-$127.98 million	($13.05)	-0.36
Alternate Health	N/A	N/A	N/A	N/A	N/A

Alternate Health has lower revenue, but higher earnings than Outset Medical.

Summary

Outset Medical beats Alternate Health on 5 of the 8 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 Alternate Health

Alternate Health Corp., a diversified healthcare company, provides cloud based software solutions in Canada. It offers medical practice and controlled substance management software, blood analysis and toxicology labs, clinical research, continuing education programs, nutraceutical products, and security and control services to the medical cannabis industry. The company is headquartered in Toronto, Canada.