Comparing GBS (NYSE:GBS) and NEXGEL (NASDAQ:NXGL)

GBS (NYSE:GBS) and NEXGEL (NASDAQ:NXGL) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

2.8% of GBS shares are owned by institutional investors. Comparatively, 2.2% of NEXGEL shares are owned by institutional investors. 0.3% of GBS shares are owned by company insiders. Comparatively, 27.2% of NEXGEL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares GBS and NEXGEL”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	50.42	-$8.31 million	($0.56)	-2.66
NEXGEL	$5.01 million	3.61	-$3.16 million	($0.55)	-5.27

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

Volatility and Risk

GBS has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares GBS and NEXGEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
NEXGEL	-67.80%	-64.21%	-33.91%

Analyst Recommendations

This is a summary of recent recommendations for GBS and NEXGEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	N/A
NEXGEL	0	0	0	0	N/A

Summary

NEXGEL beats GBS on 6 of the 11 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

About NEXGEL

NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.