Financial Comparison: Gadsden Properties (OTCMKTS:GADS) and Outset Medical (NASDAQ:OM)

Outset Medical (NASDAQ:OM) and Gadsden Properties (OTCMKTS:GADS) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Outset Medical and Gadsden Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outset Medical	0	1	3	0	2.75
Gadsden Properties	0	0	0	0	0.00

Outset Medical currently has a consensus price target of $4.50, indicating a potential upside of 488.54%. Given Outset Medical’s stronger consensus rating and higher probable upside, research analysts plainly believe Outset Medical is more favorable than Gadsden Properties.

Volatility & Risk

Outset Medical has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -5.57, meaning that its share price is 657% less volatile than the S&P 500.

Profitability

This table compares Outset Medical and Gadsden Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outset Medical	-112.57%	-175.64%	-38.61%
Gadsden Properties	N/A	N/A	N/A

Earnings & Valuation

This table compares Outset Medical and Gadsden Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outset Medical	$113.69 million	0.36	-$172.80 million	($2.48)	-0.31
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

Gadsden Properties has lower revenue, but higher earnings than Outset Medical.

Summary

Outset Medical beats Gadsden Properties on 5 of the 8 factors compared between the two stocks.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.