TELA Bio (NASDAQ:TELA – Get Free Report) and NEXGEL (NASDAQ:NXGL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Volatility and Risk
TELA Bio has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for TELA Bio and NEXGEL, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELA Bio | 0 | 1 | 3 | 0 | 2.75 |
| NEXGEL | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares TELA Bio and NEXGEL”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELA Bio | $69.30 million | 0.69 | -$46.66 million | ($1.39) | -0.88 |
| NEXGEL | $8.69 million | 2.33 | -$3.16 million | ($0.50) | -5.96 |
NEXGEL has lower revenue, but higher earnings than TELA Bio. NEXGEL is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.3% of TELA Bio shares are owned by institutional investors. Comparatively, 2.2% of NEXGEL shares are owned by institutional investors. 6.0% of TELA Bio shares are owned by insiders. Comparatively, 24.9% of NEXGEL 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.
Profitability
This table compares TELA Bio and NEXGEL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TELA Bio | -60.49% | -556.18% | -63.13% |
| NEXGEL | -52.60% | -71.19% | -34.79% |
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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.
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