Critical Analysis: Owlet (NYSE:OWLT) and Pulmonx (NASDAQ:LUNG)

Pulmonx (NASDAQ:LUNG – Get Free Report) and Owlet (NYSE:OWLT – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Pulmonx and Owlet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pulmonx -55.03% -96.66% -38.32%
Owlet -8.61% -601.24% -15.96%

Analyst Ratings

This is a summary of current ratings and target prices for Pulmonx and Owlet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pulmonx 1 0 3 0 2.50
Owlet 1 1 3 0 2.40

Pulmonx presently has a consensus price target of $7.67, indicating a potential upside of 316.67%. Owlet has a consensus price target of $15.00, indicating a potential upside of 216.46%. Given Pulmonx’s stronger consensus rating and higher probable upside, research analysts plainly believe Pulmonx is more favorable than Owlet.

Institutional & Insider Ownership

91.0% of Pulmonx shares are owned by institutional investors. Comparatively, 72.6% of Owlet shares are owned by institutional investors. 7.5% of Pulmonx shares are owned by insiders. Comparatively, 36.2% of Owlet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pulmonx and Owlet”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pulmonx $90.50 million 0.87 -$54.00 million ($1.16) -1.59
Owlet $105.70 million 1.31 -$39.68 million ($0.75) -6.32

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

Risk & Volatility

Pulmonx has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Owlet has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Summary

Owlet beats Pulmonx on 8 of the 13 factors compared between the two stocks.

About Pulmonx

(Get Free Report)

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

About Owlet

(Get Free Report)

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.

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