NEXGEL (NASDAQ:NXGL – Get Free Report) and TELA Bio (NASDAQ:TELA – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Profitability
This table compares NEXGEL and TELA Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NEXGEL | -52.60% | -71.19% | -34.79% |
| TELA Bio | -60.49% | -556.18% | -63.13% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for NEXGEL and TELA Bio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NEXGEL | 0 | 0 | 0 | 0 | 0.00 |
| TELA Bio | 0 | 1 | 3 | 0 | 2.75 |
Insider and Institutional Ownership
2.2% of NEXGEL shares are owned by institutional investors. Comparatively, 94.3% of TELA Bio shares are owned by institutional investors. 24.9% of NEXGEL shares are owned by insiders. Comparatively, 6.0% of TELA Bio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares NEXGEL and TELA Bio”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NEXGEL | $6.73 million | 3.00 | -$3.16 million | ($0.50) | -5.94 |
| TELA Bio | $69.30 million | 0.73 | -$46.66 million | ($1.39) | -0.93 |
NEXGEL has higher earnings, but lower revenue than TELA Bio. NEXGEL is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NEXGEL has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, TELA Bio has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
About NEXGEL
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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