Nephros (NASDAQ:NEPH – Get Free Report) and Aethlon Medical (NASDAQ:AEMD – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Volatility & Risk
Nephros has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Aethlon Medical has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nephros and Aethlon Medical”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nephros | $14.16 million | 1.15 | -$1.58 million | ($0.09) | -17.22 |
| Aethlon Medical | $570,000.00 | 10.91 | -$12.21 million | ($1.58) | -0.27 |
Profitability
This table compares Nephros and Aethlon Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nephros | -6.86% | -11.39% | -8.30% |
| Aethlon Medical | N/A | -153.96% | -109.13% |
Insider & Institutional Ownership
41.1% of Nephros shares are owned by institutional investors. Comparatively, 2.0% of Aethlon Medical shares are owned by institutional investors. 4.1% of Nephros shares are owned by insiders. Comparatively, 1.1% of Aethlon Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Nephros and Aethlon Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nephros | 0 | 0 | 1 | 0 | 3.00 |
| Aethlon Medical | 0 | 0 | 1 | 0 | 3.00 |
Nephros presently has a consensus target price of $5.00, indicating a potential upside of 222.58%. Aethlon Medical has a consensus target price of $7.00, indicating a potential upside of 1,527.91%. Given Aethlon Medical’s higher probable upside, analysts clearly believe Aethlon Medical is more favorable than Nephros.
Summary
Nephros beats Aethlon Medical on 7 of the 12 factors compared between the two stocks.
About Nephros
Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.
About Aethlon Medical
Aethlon Medical, Inc., a medical therapeutic company, focuses on developing products to treat cancer and life-threatening infectious diseases in the United States. It develops Hemopurifier, a clinical-stage immunotherapeutic device that removes tumor-derived exosomes and life-threatening viruses and use in organ transplantation. The company was incorporated in 1999 and is based in San Diego, California.
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