ClearPoint Neuro (NASDAQ:CLPT) and Modular Medical (NASDAQ:MODD) Critical Review

Modular Medical (NASDAQ:MODD) and ClearPoint Neuro (NASDAQ:CLPT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Modular Medical has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, ClearPoint Neuro has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Modular Medical and ClearPoint Neuro’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modular Medical	N/A	N/A	-$13.88 million	($0.97)	-1.60
ClearPoint Neuro	$23.95 million	6.13	-$22.09 million	($0.91)	-5.96

Modular Medical has higher earnings, but lower revenue than ClearPoint Neuro. ClearPoint Neuro is trading at a lower price-to-earnings ratio than Modular Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Modular Medical and ClearPoint Neuro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modular Medical	0	0	2	0	3.00
ClearPoint Neuro	0	0	3	0	3.00

Modular Medical currently has a consensus target price of $4.25, indicating a potential upside of 174.19%. ClearPoint Neuro has a consensus target price of $12.00, indicating a potential upside of 121.40%. Given Modular Medical’s higher probable upside, research analysts plainly believe Modular Medical is more favorable than ClearPoint Neuro.

Profitability

This table compares Modular Medical and ClearPoint Neuro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modular Medical	N/A	-235.93%	-180.37%
ClearPoint Neuro	-92.21%	-83.94%	-47.92%

Institutional & Insider Ownership

27.5% of Modular Medical shares are held by institutional investors. Comparatively, 30.1% of ClearPoint Neuro shares are held by institutional investors. 32.3% of Modular Medical shares are held by company insiders. Comparatively, 6.1% of ClearPoint Neuro shares are held 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.

Summary

ClearPoint Neuro beats Modular Medical on 7 of the 11 factors compared between the two stocks.

About Modular Medical

Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.

About ClearPoint Neuro

ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. It develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. The company offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. It has license and collaboration agreement with Clinical Laserthermia Systems AB; license and research agreement with Koninklijke Philips N.V., UCB Biopharma SRL, and University of California and San Francisco; and development and license agreement with NE Scientific, LLC. The company was formerly known as MRI Interventions, Inc. and changed its name to ClearPoint Neuro, Inc. in February 2020. ClearPoint Neuro, Inc. was incorporated in 1998 and is headquartered in Solana Beach, California.