Guided Therapeutics (OTCMKTS:GTHP) versus Outset Medical (NASDAQ:OM) Financial Analysis

Guided Therapeutics (OTCMKTS:GTHP) and Outset Medical (NASDAQ:OM) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

9.7% of Guided Therapeutics shares are held by institutional investors. 66.8% of Guided Therapeutics shares are held by insiders. Comparatively, 3.5% of Outset Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Guided Therapeutics and Outset Medical’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guided Therapeutics	$100,000.00	67.52	-$3.49 million	N/A	N/A
Outset Medical	$116.43 million	0.25	-$172.80 million	($3.38)	-0.17

Guided Therapeutics has higher earnings, but lower revenue than Outset Medical.

Volatility & Risk

Guided Therapeutics has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Guided Therapeutics and Outset Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guided Therapeutics	0	0	0	0	N/A
Outset Medical	1	2	4	0	2.43

Outset Medical has a consensus price target of $4.64, suggesting a potential upside of 729.67%. Given Outset Medical’s higher probable upside, analysts plainly believe Outset Medical is more favorable than Guided Therapeutics.

Profitability

This table compares Guided Therapeutics and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guided Therapeutics	N/A	N/A	-138.23%
Outset Medical	-136.72%	-143.52%	-48.89%

Summary

Guided Therapeutics beats Outset Medical on 6 of the 11 factors compared between the two stocks.

About Guided Therapeutics

Guided Therapeutics, Inc., a medical technology company, focuses on developing medical devices. It focuses on the commercialization of LuViva, a non-invasive cervical cancer detection device that identifies cervical cancers and precancers painlessly, non-invasively, and at the point-of-care by scanning the cervix with light, then analyzing the light reflected and fluorescent light. The company was formerly known as SpectRx, Inc. and changed its name to Guided Therapeutics, Inc. in February 2008. Guided Therapeutics, Inc. was incorporated in 1992 and is based in Norcross, Georgia.

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.