NeurAxis (NASDAQ:NRXS) and IRIDEX (NASDAQ:IRIX) Critical Comparison

IRIDEX (NASDAQ:IRIX) and NeurAxis (NASDAQ:NRXS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Institutional and Insider Ownership

20.1% of IRIDEX shares are held by institutional investors. Comparatively, 11.8% of NeurAxis shares are held by institutional investors. 7.3% of IRIDEX shares are held by insiders. Comparatively, 15.2% of NeurAxis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares IRIDEX and NeurAxis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRIDEX	-21.84%	-134.37%	-32.23%
NeurAxis	-672.66%	N/A	-787.15%

Earnings & Valuation

This table compares IRIDEX and NeurAxis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRIDEX	$51.87 million	0.48	-$9.57 million	($0.66)	-2.27
NeurAxis	$2.27 million	7.82	-$14.63 million	($2.94)	-0.88

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for IRIDEX and NeurAxis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRIDEX	0	1	0	0	2.00
NeurAxis	0	0	0	0	N/A

IRIDEX presently has a consensus price target of $2.00, suggesting a potential upside of 33.78%. Given IRIDEX’s higher possible upside, research analysts plainly believe IRIDEX is more favorable than NeurAxis.

Volatility and Risk

IRIDEX has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, NeurAxis has a beta of 4.26, meaning that its stock price is 326% more volatile than the S&P 500.

Summary

IRIDEX beats NeurAxis on 7 of the 11 factors compared between the two stocks.

About IRIDEX

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.