Head-To-Head Survey: Rockwell Medical (NASDAQ:RMTI) versus InMode (NASDAQ:INMD)

Rockwell Medical (NASDAQ:RMTI) and InMode (NASDAQ:INMD) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

Rockwell Medical has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, InMode has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rockwell Medical and InMode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Medical	1	0	1	0	2.00
InMode	1	7	1	0	2.00

Rockwell Medical currently has a consensus price target of $2.50, suggesting a potential upside of 147.52%. InMode has a consensus price target of $16.80, suggesting a potential upside of 17.48%. Given Rockwell Medical’s higher probable upside, analysts plainly believe Rockwell Medical is more favorable than InMode.

Profitability

This table compares Rockwell Medical and InMode’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Medical	-7.30%	-16.77%	-9.88%
InMode	25.33%	14.52%	12.88%

Institutional & Insider Ownership

23.3% of Rockwell Medical shares are held by institutional investors. Comparatively, 68.0% of InMode shares are held by institutional investors. 3.6% of Rockwell Medical shares are held by company insiders. Comparatively, 6.9% of InMode shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Rockwell Medical and InMode”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Medical	$101.49 million	0.39	-$480,000.00	($0.16)	-6.31
InMode	$370.49 million	2.45	$181.27 million	$1.44	9.93

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

Summary

InMode beats Rockwell Medical on 11 of the 12 factors compared between the two stocks.

About Rockwell Medical

Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.