Analyzing PolyPid (NASDAQ:PYPD) & LENSAR (NASDAQ:LNSR)

PolyPid (NASDAQ:PYPD) and LENSAR (NASDAQ:LNSR) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares PolyPid and LENSAR’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PolyPid	N/A	N/A	-$23.86 million	($12.64)	-0.28
LENSAR	$45.12 million	1.18	-$14.38 million	($1.58)	-2.96

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

Volatility and Risk

PolyPid has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

26.5% of PolyPid shares are owned by institutional investors. Comparatively, 40.2% of LENSAR shares are owned by institutional investors. 24.7% of PolyPid shares are owned by company insiders. Comparatively, 38.5% of LENSAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for PolyPid and LENSAR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PolyPid	0	0	1	0	3.00
LENSAR	0	0	1	0	3.00

PolyPid currently has a consensus price target of $14.00, suggesting a potential upside of 294.37%. LENSAR has a consensus price target of $8.00, suggesting a potential upside of 71.31%. Given PolyPid’s higher possible upside, equities research analysts clearly believe PolyPid is more favorable than LENSAR.

Profitability

This table compares PolyPid and LENSAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PolyPid	N/A	-969.85%	-121.65%
LENSAR	-27.57%	-36.53%	-17.67%

Summary

LENSAR beats PolyPid on 7 of the 11 factors compared between the two stocks.

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.

About LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.