Nephros Inc. (NEPH) vs Zentek Ltd. (ZTEKF)

Nephros Inc. and Zentek Ltd. are both Medical Instruments & Supplies companies. Zentek Ltd. is the larger, with a market value of $62.3M against $33.6M — 1.9× the size. Zentek Ltd. has negative trailing earnings, so its P/E is not meaningful; Nephros Inc. trades at 18.0×. Nephros Inc. grew revenue faster over the last twelve months: 20.4% against −80.8%. Nephros Inc. has the higher net margin (8.86% vs 0.00%) and the higher return on invested capital (14.3% vs −68.6%). Across the 17 metrics below, Nephros Inc. leads on 15 and Zentek Ltd. on 2.

Valuation

Metric NEPH ZTEKF Medical Instruments & Supplies median
P/E 17.98 n/m 30.28
P/S 1.59 345.63 2.49
P/B 2.74 2.28 2.34
Price to free cash flow n/m n/m 23.49
EV/EBITDA 15.32 n/m 14.87
EV/Sales 1.38 258.85 2.75
Earnings yield 5.56% (20.64%) 0.00%
Free cash flow yield (3.02%) (10.97%) 0.59%

Profitability

Metric NEPH ZTEKF Medical Instruments & Supplies median
Gross margin 60.55% 0.00% 53.60%
Operating margin 8.48% 0.00% 1.97%
Net margin 8.86% 0.00% 0.00%
Free cash flow margin (4.22%) 0.00% 2.36%
Return on equity 16.95% (53.33%) 0.00%
Return on assets 13.39% (42.42%) 0.00%
Return on invested capital 14.29% (68.55%) 0.13%

Growth

Metric NEPH ZTEKF Medical Instruments & Supplies median
Revenue growth (TTM) 20.36% (80.83%) 8.97%
EPS growth (last fiscal year) 1,471.43% 0.00% 6.51%
Revenue growth, 5-year CAGR 17.02% — 8.85%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NEPH ZTEKF Medical Instruments & Supplies median
Debt to equity 0.00 0.07 0.10
Current ratio 5.50 4.65 2.47
Net debt to EBITDA (4.20) (0.04) 0.97

Dividend

Metric NEPH ZTEKF Medical Instruments & Supplies median
Dividend yield — — 1.02%
Payout ratio — — 0.27

Size

Metric NEPH ZTEKF Medical Instruments & Supplies median
Market cap 33.59m 62.30m 1.71b

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