Critical Survey: Nephros (NEPH) vs. Its Peers

Nephros (OTCMKTS: NEPH) is one of 117 public companies in the “Surgical & medical instruments” industry, but how does it contrast to its peers? We will compare Nephros to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Profitability

This table compares Nephros and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nephros -25.82% -82.57% -49.16%
Nephros Competitors -35.32% -64.17% -17.18%

Risk & Volatility

Nephros has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Nephros’ peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Nephros and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nephros 0 0 0 0 N/A
Nephros Competitors 684 2496 4666 227 2.55

As a group, “Surgical & medical instruments” companies have a potential upside of 418.93%. Given Nephros’ peers higher possible upside, analysts plainly believe Nephros has less favorable growth aspects than its peers.

Insider & Institutional Ownership

49.9% of shares of all “Surgical & medical instruments” companies are owned by institutional investors. 5.6% of Nephros shares are owned by insiders. Comparatively, 15.9% of shares of all “Surgical & medical instruments” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nephros and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nephros $3.81 million -$800,000.00 -12.40
Nephros Competitors $1.48 billion $97.59 million -154.22

Nephros’ peers have higher revenue and earnings than Nephros. Nephros is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Nephros peers beat Nephros on 8 of the 9 factors compared.

About Nephros

Nephros, Inc., a commercial stage medical device and commercial product company, develops and sells liquid purification filters and hemodiafiltration (HDF) systems primarily in the United States. The company's ultrafilters 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 water borne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. It offers HDF systems for use in conjunction with a hemodialysis machine that enables nephrologists to provide HDF treatment to patients with end stage renal disease; and hemodiafilters for use as dialyzers in an hemodialysis treatment, as well as other disposables for use in the hemodiafiltration treatment process. The company was founded in 1997 and is headquartered in South Orange, New Jersey.

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