Financial Review: Emerald (NYSE:EEX) versus Augmedix (OTCMKTS:AUGX)

Emerald (NYSE:EEX) and Augmedix (OTCMKTS:AUGX) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

12.9% of Emerald shares are owned by institutional investors. Comparatively, 71.6% of Augmedix shares are owned by institutional investors. 3.5% of Emerald shares are owned by company insiders. Comparatively, 11.0% of Augmedix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Emerald has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Augmedix has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500.

Profitability

This table compares Emerald and Augmedix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	31.36%	-231.58%	10.12%
Augmedix	-57.70%	-980.09%	-57.85%

Valuation & Earnings

This table compares Emerald and Augmedix’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$325.90 million	0.81	$130.80 million	$0.14	30.00
Augmedix	$37.02 million	5.69	-$24.45 million	($0.56)	-9.21

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

Analyst Ratings

This is a summary of current ratings and target prices for Emerald and Augmedix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
Augmedix	0	0	3	0	3.00

Emerald currently has a consensus target price of $9.60, suggesting a potential upside of 128.57%. Augmedix has a consensus target price of $6.83, suggesting a potential upside of 32.43%. Given Emerald’s higher probable upside, analysts clearly believe Emerald is more favorable than Augmedix.

Summary

Emerald beats Augmedix on 9 of the 13 factors compared between the two stocks.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. It operates in two segments, Commerce; and Design, Creative and Technology. The Commerce segment engages in the events and services covering merchandising, licensing, retail sourcing, and marketing that enables professionals to make informed decisions and meet consumer demands. The Design, Creative and Technology segment provides events and services that support various industries connecting businesses and professionals with products, operational strategies, and integration to drive new business and streamline processes, and creative solutions. It also operates content and content-marketing websites, and related digital products, as well as produce publications. In addition, the company operates Elastic Suite platform that streamlines the wholesale buying process for brands and retail buyers; and Flex platform. Emerald Holding, Inc. was incorporated in 2013 and is based in New York, New York.

About Augmedix

Augmedix, Inc. provides remote medical documentation solutions and live clinical support services in the United States. Its platform offers Augmedix Live that provides synchronous medical note documentation and point of care support; Augmedix Notes that offers asynchronous medical documentation based upon previously recorded visits; Augmedix Prep that provides patient demographics, past medical history, medication changes and other points from the patient's health record; and Augmedix Go, a self-service mobile software application. The company enables clinicians to access its applications through mobile devices, such as smartphones or Google Glass. It serves health systems and specialty groups. The company was founded in 2013 and is headquartered in San Francisco, California.