Comparing Nephros (NASDAQ:NEPH) and Endologix (OTCMKTS:ELGXQ)

Nephros (NASDAQ:NEPH) and Endologix (OTCMKTS:ELGXQ) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$15.52 million	2.23	-$1.58 million	$0.07	46.71
Endologix	N/A	N/A	N/A	N/A	N/A

Endologix has lower revenue, but higher earnings than Nephros.

Profitability

This table compares Nephros and Endologix’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%
Endologix	N/A	N/A	N/A

Insider & Institutional Ownership

41.1% of Nephros shares are owned by institutional investors. 6.7% of Nephros shares are owned by company insiders. Comparatively, 1.3% of Endologix 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nephros and Endologix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	0	1	0	3.00
Endologix	0	0	0	0	0.00

Nephros currently has a consensus target price of $5.00, suggesting a potential upside of 52.91%. Given Nephros’ stronger consensus rating and higher probable upside, analysts clearly believe Nephros is more favorable than Endologix.

Summary

Nephros beats Endologix on 6 of the 9 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 Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California. On July 5, 2020, Endologix, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. It is in joint administration with TriVascular Sales LLC.