Critical Survey: Modular Medical (NASDAQ:MODD) versus Vapotherm (NYSE:VAPO)

Modular Medical (NASDAQ:MODD) and Vapotherm (NYSE:VAPO) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares Modular Medical and Vapotherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modular Medical	N/A	-228.12%	-178.09%
Vapotherm	-76.74%	N/A	-68.08%

Risk and Volatility

Modular Medical has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Vapotherm has a beta of -1.1, meaning that its stock price is 210% less volatile than the S&P 500.

Insider & Institutional Ownership

27.5% of Modular Medical shares are held by institutional investors. Comparatively, 43.1% of Vapotherm shares are held by institutional investors. 32.3% of Modular Medical shares are held by company insiders. Comparatively, 15.8% of Vapotherm shares are held 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.

Analyst Recommendations

This is a breakdown of recent ratings for Modular Medical and Vapotherm, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modular Medical	0	0	2	0	3.00
Vapotherm	0	0	0	0	N/A

Modular Medical currently has a consensus price target of $4.25, suggesting a potential upside of 82.40%. Given Modular Medical’s higher probable upside, research analysts plainly believe Modular Medical is more favorable than Vapotherm.

Valuation and Earnings

This table compares Modular Medical and Vapotherm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modular Medical	N/A	N/A	-$17.47 million	($0.78)	-2.99
Vapotherm	$68.67 million	0.20	-$58.19 million	($8.61)	-0.25

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

Summary

Modular Medical beats Vapotherm on 7 of the 12 factors compared between the two stocks.

About Modular Medical

Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.

About Vapotherm

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary high velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. The company offers High Velocity Therapy systems, such as HVT 2.0, Precision Flow Hi-VNI, Precision Flow Plus, and Precision Flow Classic which delivers non-invasive ventilatory support to patients by providing heated, humidified, and oxygenated air at a high velocity to treat patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit, which allows patients to be transferred between care areas within the hospital or ambulate while on therapy; Q50 compressor that provides compressed air necessary to run the precision flow systems in areas of the hospital without access to a wall gas source; aerosol aeroneb adaptor to facilitate delivery of aerosolized solutions; aerosol disposable patient circuit that is designed to streamline the provision of continuous and intermittent delivery of aerosol solutions for patients; and tracheostomy adaptors that simplifies the connection of the High Velocity Therapy systems to a tracheostomy collar used to wean patients off mechanical ventilation. In addition, the company offers ProSoft cannula to provide gentle contact with the skin; and disposable products comprising single-use disposables and nasal interfaces, as well as Oxygen Assist Module, which helps clinicians maintain oxygen levels within a target range. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.