Analyzing Spectral AI (NASDAQ:MDAI) and Dynatronics (NASDAQ:DYNT)

Spectral AI (NASDAQ:MDAI) and Dynatronics (NASDAQ:DYNT) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Spectral AI and Dynatronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	N/A	N/A	-108.45%
Dynatronics	-13.07%	-55.14%	-14.95%

Risk & Volatility

Spectral AI has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Dynatronics has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Institutional and Insider Ownership

67.1% of Spectral AI shares are owned by institutional investors. Comparatively, 4.2% of Dynatronics shares are owned by institutional investors. 56.7% of Spectral AI shares are owned by insiders. Comparatively, 9.1% of Dynatronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Spectral AI and Dynatronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	1	0	3.00
Dynatronics	0	1	0	0	2.00

Spectral AI presently has a consensus price target of $4.00, suggesting a potential upside of 158.06%. Dynatronics has a consensus price target of $3.80, suggesting a potential upside of 879.38%. Given Dynatronics’ higher probable upside, analysts clearly believe Dynatronics is more favorable than Spectral AI.

Valuation & Earnings

This table compares Spectral AI and Dynatronics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$19.30 million	1.40	-$20.85 million	N/A	N/A
Dynatronics	$40.61 million	0.05	-$4.97 million	($1.19)	-0.33

Dynatronics has higher revenue and earnings than Spectral AI.

Summary

Spectral AI beats Dynatronics on 8 of the 12 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound's healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About Dynatronics

Dynatronics Corporation, a medical device company, designs, manufactures, and sells physical therapy, rehabilitation, orthopedics, pain management, and athletic training products in the United States. The company offers orthopedic soft bracing products include cervical collars, shoulder immobilizers, arm slings, wrist and elbow supports, abdominal and lumbosacral supports, maternity supports, knee immobilizers and supports, ankle walkers and supports, plantar fasciitis splints, and cold therapy products. It also offers physical therapy and rehabilitation products, which include therapeutic modality devices comprising electrotherapy, ultrasound, phototherapy, traction, hot and cold therapy, and electrodes; and power and manually operated treatment tables, mat platforms, work tables, parallel bars, training stairs, weight racks, and other related equipment. In addition, the company manufactures and distributes clinical supplies, including exercise bands and tubing, lotions and gels, orthopedic bracings, paper products, and other related supplies. It markets its products under the Dynatron, Dynatron Solaris, Dynaheat, BodyIce, Powermatic, Bird & Cronin, Physician's Choice, Hausmann, PROTEAM, and Mammoth brands. The company sells its products to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and retail distributors and equipment manufacturers. It also exports its products in Asia, Latin America, and the Middle East. Dynatronics Corporation was founded in 1979 and is headquartered in Eagan, Minnesota.