Zynex (NASDAQ:ZYXI) versus Ayr Wellness (OTCMKTS:AYRWF) Critical Survey

Ayr Wellness (OTCMKTS:AYRWF) and Zynex (NASDAQ:ZYXI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ayr Wellness and Zynex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ayr Wellness	0	0	0	0	0.00
Zynex	1	2	1	0	2.00

Zynex has a consensus target price of $4.90, indicating a potential upside of 3,820.00%. Given Zynex’s stronger consensus rating and higher possible upside, analysts plainly believe Zynex is more favorable than Ayr Wellness.

Risk and Volatility

Ayr Wellness has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ayr Wellness and Zynex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ayr Wellness	$463.63 million	0.00	-$359.31 million	($2.67)	0.00
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05

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

Profitability

This table compares Ayr Wellness and Zynex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ayr Wellness	N/A	N/A	N/A
Zynex	-68.35%	-804.30%	-36.67%

Institutional & Insider Ownership

0.9% of Ayr Wellness shares are owned by institutional investors. Comparatively, 29.7% of Zynex shares are owned by institutional investors. 8.1% of Ayr Wellness shares are owned by company insiders. Comparatively, 49.3% of Zynex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Zynex beats Ayr Wellness on 8 of the 14 factors compared between the two stocks.

About Ayr Wellness

Ayr Wellness Inc. operates as a vertically-integrated multi-state cannabis operator that cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. It owns and operates a chain of cannabis retail stores under AYR, Liberty Health Sciences, and The Dispensary brand names. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.