Nuwellis (NASDAQ:NUWE) and Sonova (OTCMKTS:SONVY) Critical Contrast

Sonova (OTCMKTS:SONVY) and Nuwellis (NASDAQ:NUWE) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Sonova and Nuwellis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonova	0	1	0	0	2.00
Nuwellis	0	1	1	1	3.00

Nuwellis has a consensus target price of $17.00, suggesting a potential upside of 1,187.88%. Given Nuwellis’ stronger consensus rating and higher possible upside, analysts clearly believe Nuwellis is more favorable than Sonova.

Earnings and Valuation

This table compares Sonova and Nuwellis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonova	$3.80 billion	5.78	$678.65 million	N/A	N/A
Nuwellis	$9.01 million	0.08	-$20.21 million	($290.21)	0.00

Sonova has higher revenue and earnings than Nuwellis.

Profitability

This table compares Sonova and Nuwellis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonova	N/A	N/A	N/A
Nuwellis	-232.24%	-1,716.60%	-245.90%

Institutional and Insider Ownership

0.0% of Sonova shares are owned by institutional investors. Comparatively, 3.1% of Nuwellis shares are owned by institutional investors. 0.0% of Sonova shares are owned by company insiders. Comparatively, 2.6% of Nuwellis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Sonova has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Nuwellis has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

Sonova beats Nuwellis on 7 of the 13 factors compared between the two stocks.

About Sonova

Sonova Holding AG manufactures and sells hearing care solutions for adults and children in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Hearing Instruments and Cochlear Implants segments. The Hearing Instruments segments engages in the design, development, manufacture, distribution, and service of hearing instruments and related products, as well as wireless headsets, speech-enhanced hearables, and audiophile headphones under the Phonak, Unitron, Hansaton, and Sennheiser brand names; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton Hearing brands. The Cochlear Implants segment is involved in the design, development, manufacture, distribution, and service of hearing implants and related products under the Advanced Bionics brand. The company sells its products through independent distributors; and provides hearing care services through a network of stores and clinics. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.

About Nuwellis

Nuwellis, Inc., a medical device company, focuses on developing, manufacturing, and commercializing medical devices used in ultrafiltration therapy. The company's products are the Aquadex FlexFlow and Aquadex SmartFlow systems, which are indicated for the treatment of patients suffering from fluid overload who have failed diuretics. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors primarily in Austria, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama. Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.