Zynex (OTCMKTS: ZYXI) and Arch Therapeutics (OTCMKTS:ARTH) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
This table compares Zynex and Arch Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Zynex and Arch Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arch Therapeutics has a consensus price target of $3.00, suggesting a potential upside of 831.68%. Given Arch Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Arch Therapeutics is more favorable than Zynex.
Earnings & Valuation
This table compares Zynex and Arch Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zynex||$23.43 million||5.67||$7.36 million||$0.23||17.78|
|Arch Therapeutics||N/A||N/A||-$7.78 million||($0.04)||-8.05|
Zynex has higher revenue and earnings than Arch Therapeutics. Arch Therapeutics is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Zynex has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Arch Therapeutics has a beta of 4.31, indicating that its share price is 331% more volatile than the S&P 500.
Institutional & Insider Ownership
0.0% of Zynex shares are held by institutional investors. Comparatively, 0.0% of Arch Therapeutics shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Zynex beats Arch Therapeutics on 8 of the 13 factors compared between the two stocks.
Zynex Company Profile
Zynex, Inc. operates through the Electrotherapy and Pain Management Products segment. The Company conducts its business through its subsidiaries and the operating subsidiary is Zynex Medical, Inc. (ZMI). Its other subsidiaries include Zynex Monitoring Solutions, Inc. (ZMS) and Zynex Europe, ApS (ZEU). ZMI designs, manufactures and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMS is in the process of developing its blood volume monitoring product for non-invasive cardiac monitoring. ZEU intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals. It markets and sells Zynex-manufactured products and distributes private labeled products. Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries. ZMI devices are intended for pain management to reduce reliance on drugs and medications.
Arch Therapeutics Company Profile
Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.
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