Critical Survey: Spectral AI (MDAI) vs. The Competition

Spectral AI (NASDAQ:MDAI) is one of 226 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it contrast to its peers? We will compare Spectral AI to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 47.4% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 56.7% of Spectral AI shares are held by insiders. Comparatively, 15.9% of shares of all “Surgical & medical instruments” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Spectral AI and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-89.85%	N/A	-104.64%
Spectral AI Competitors	-578.37%	-140.27%	-25.88%

Volatility & Risk

Spectral AI has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Spectral AI’s peers have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Spectral AI and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	3	1	3.25
Spectral AI Competitors	1663	4406	8446	251	2.49

Spectral AI currently has a consensus price target of $4.50, indicating a potential upside of 265.85%. As a group, “Surgical & medical instruments” companies have a potential upside of 17.84%. Given Spectral AI’s stronger consensus rating and higher probable upside, analysts plainly believe Spectral AI is more favorable than its peers.

Valuation & Earnings

This table compares Spectral AI and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Spectral AI	$18.06 million	-$20.85 million	-0.92
Spectral AI Competitors	$870.57 million	$47.37 million	-1.16

Spectral AI’s peers have higher revenue and earnings than Spectral AI. Spectral AI is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Spectral AI beats its peers on 10 of the 13 factors compared.

Spectral AI Company Profile

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.