Critical Survey: Semler Scientific (NASDAQ:SMLR) vs. NexGel (NASDAQ:NXGL)

NexGel (NASDAQ:NXGL) and Semler Scientific (NASDAQ:SMLR) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Volatility & Risk

NexGel has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Semler Scientific has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares NexGel and Semler Scientific”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexGel	$8.69 million	1.48	-$3.28 million	($0.37)	-4.27
Semler Scientific	$56.29 million	5.62	$40.90 million	$2.78	7.51

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

Profitability

This table compares NexGel and Semler Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexGel	-24.69%	-47.35%	-24.67%
Semler Scientific	130.80%	34.21%	25.58%

Analyst Ratings

This is a breakdown of current recommendations and price targets for NexGel and Semler Scientific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexGel	1	0	0	0	1.00
Semler Scientific	1	0	4	0	2.60

Semler Scientific has a consensus target price of $74.25, indicating a potential upside of 255.60%. Given Semler Scientific’s stronger consensus rating and higher possible upside, analysts clearly believe Semler Scientific is more favorable than NexGel.

Institutional & Insider Ownership

2.2% of NexGel shares are owned by institutional investors. Comparatively, 49.4% of Semler Scientific shares are owned by institutional investors. 20.6% of NexGel shares are owned by company insiders. Comparatively, 16.4% of Semler Scientific shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Semler Scientific beats NexGel on 13 of the 14 factors compared between the two stocks.

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 Semler Scientific

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.