QT Imaging (NASDAQ:QTI) versus Trimedyne (OTCMKTS:TMED) Critical Review

QT Imaging (NASDAQ:QTI) and Trimedyne (OTCMKTS:TMED) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

QT Imaging has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Trimedyne has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for QT Imaging and Trimedyne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QT Imaging	1	0	1	0	2.00
Trimedyne	0	0	0	0	0.00

Valuation and Earnings

This table compares QT Imaging and Trimedyne”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QT Imaging	$4.88 million	12.12	-$8.98 million	($2.54)	-1.95
Trimedyne	N/A	N/A	N/A	($1.36)	-21.24

Trimedyne has lower revenue, but higher earnings than QT Imaging. Trimedyne is trading at a lower price-to-earnings ratio than QT Imaging, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares QT Imaging and Trimedyne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QT Imaging	-201.67%	N/A	-184.12%
Trimedyne	N/A	N/A	N/A

Institutional and Insider Ownership

24.2% of QT Imaging shares are owned by institutional investors. 28.8% of QT Imaging shares are owned by insiders. Comparatively, 11.1% of Trimedyne shares are owned 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.

Summary

QT Imaging beats Trimedyne on 6 of the 10 factors compared between the two stocks.

About QT Imaging

QT Imaging Holdings, Inc. engages in the research, development, and commercialization of body imaging systems for detection, diagnosis, monitoring, and treatment of diseases. The company offers QT Ultrasound Breast Scanner, an ultrasonic imaging system that provides reflection-mode and transmission-mode images of a patient’s breast. QT Imaging Holdings, Inc. was founded in 2011 and is based in Novato, California.

About Trimedyne

Trimedyne, Inc. manufactures and sells lasers, and disposable and reusable fiber-optic laser devices for use in the medical field. It offers lasers, fibers, needles, and switch tips for use in orthopedics, urology, ear and nose surgery, throat surgery, gynecology, gastrointestinal surgery, general surgery, and other medical specialties. The company also provides 80 watt and 30 watt holmium lasers, and side firing laser needles to treat herniated or ruptured spinal discs. In addition, it engages in the provision of services, and rental of lasers and other medical equipment to hospitals and surgery centers on a fee-per-case basis. The company operates in Asia, Europe, Latin America, the Middle East, Australia, and internationally. It markets its products through commission sales representatives in the United States and independent distributors internationally. Trimedyne, Inc. was founded in 1980 and is based in Irvine, California.