Analyzing InMode (NASDAQ:INMD) and QT Imaging (NASDAQ:QTI)

InMode (NASDAQ:INMD) and QT Imaging (NASDAQ:QTI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares InMode and QT Imaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InMode	38.84%	26.15%	23.83%
QT Imaging	N/A	N/A	-19.75%

Analyst Recommendations

This is a breakdown of current recommendations for InMode and QT Imaging, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMode	0	4	2	0	2.33
QT Imaging	0	0	0	0	N/A

InMode currently has a consensus price target of $32.80, suggesting a potential upside of 79.82%. Given InMode’s higher probable upside, analysts plainly believe InMode is more favorable than QT Imaging.

Institutional & Insider Ownership

68.0% of InMode shares are owned by institutional investors. Comparatively, 24.2% of QT Imaging shares are owned by institutional investors. 6.9% of InMode shares are owned by insiders. Comparatively, 75.4% of QT Imaging shares 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.

Earnings & Valuation

This table compares InMode and QT Imaging’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InMode	$466.26 million	3.29	$197.92 million	$2.11	8.64
QT Imaging	N/A	N/A	-$4.03 million	N/A	N/A

InMode has higher revenue and earnings than QT Imaging.

Volatility and Risk

InMode has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, QT Imaging has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

Summary

InMode beats QT Imaging on 9 of the 10 factors compared between the two stocks.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.

About QT Imaging

QT Imaging Holdings, Inc. engages in the research, development, and commercialization of body imaging systems for detection, diagnosis, monitoring, and treatment of diseases. The company offers QT Ultrasound Breast Scanner, an ultrasonic imaging system that provides reflection-mode and transmission-mode images of a patient's breast. QT Imaging Holdings, Inc. was founded in 2011 and is based in Novato, California.