Arch Therapeutics (OTCMKTS: ARTH) and Zynex (OTCMKTS:ZYXI) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
This is a summary of current recommendations and price targets for Arch Therapeutics and Zynex, as reported by MarketBeat.com.
||Strong Buy Ratings
Arch Therapeutics currently has a consensus price target of $2.83, indicating a potential upside of 711.84%. Given Arch Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Arch Therapeutics is more favorable than Zynex.
Earnings & Valuation
This table compares Arch Therapeutics and Zynex’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Zynex has higher revenue and earnings than Arch Therapeutics. Arch Therapeutics is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
This table compares Arch Therapeutics and Zynex’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Risk and Volatility
Arch Therapeutics has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Zynex has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Insider & Institutional Ownership
0.0% of Arch Therapeutics shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Arch Therapeutics beats Zynex on 7 of the 13 factors compared between the two stocks.
About Arch Therapeutics
Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.
Zynex, Inc. operates through the Electrotherapy and Pain Management Products segment. The Company conducts its business through its subsidiaries and the operating subsidiary is Zynex Medical, Inc. (ZMI). Its other subsidiaries include Zynex Monitoring Solutions, Inc. (ZMS) and Zynex Europe, ApS (ZEU). ZMI designs, manufactures and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMS is in the process of developing its blood volume monitoring product for non-invasive cardiac monitoring. ZEU intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals. It markets and sells Zynex-manufactured products and distributes private labeled products. Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries. ZMI devices are intended for pain management to reduce reliance on drugs and medications.
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