Pulmonx (NASDAQ:LUNG – Get Rating) and Biostage (OTCMKTS:BSTG – Get Rating) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Risk and Volatility
Pulmonx has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Biostage has a beta of -0.95, suggesting that its stock price is 195% less volatile than the S&P 500.
Valuation & Earnings
This table compares Pulmonx and Biostage’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pulmonx | $53.66 million | 7.86 | -$58.92 million | ($1.59) | -7.04 |
| Biostage | N/A | N/A | -$6.07 million | ($0.97) | -6.34 |
Insider and Institutional Ownership
92.7% of Pulmonx shares are owned by institutional investors. 8.5% of Pulmonx shares are owned by insiders. Comparatively, 9.1% of Biostage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Pulmonx and Biostage, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pulmonx | 1 | 1 | 5 | 0 | 2.57 |
| Biostage | 0 | 0 | 0 | 0 | N/A |
Pulmonx currently has a consensus price target of $14.50, suggesting a potential upside of 29.46%. Given Pulmonx’s higher probable upside, equities research analysts clearly believe Pulmonx is more favorable than Biostage.
Profitability
This table compares Pulmonx and Biostage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pulmonx | -109.80% | -35.08% | -28.35% |
| Biostage | N/A | N/A | -157.80% |
About Pulmonx
Pulmonx Corporation, a medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. It offers Zephyr Endobronchial Valve, a solution for the treatment of bronchoscopic in adult patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. The company also provides StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. It serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
About Biostage
Biostage, Inc. is a biotechnology company, which engages in the development of organ implants to treat congenital defects, cancers, and life-threatening conditions of the esophagus, bronchus and trachea. It operates through Cellframe technology, engineered to stimulate the body’s signaling pathways and natural healing process to regenerate and restore organ function. The company was founded on May 3, 2012 and is headquartered in Holliston, MA.
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