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 $45.0M — 1.4× the size. Zentek Ltd. has negative trailing earnings, so its P/E is not meaningful; Nephros Inc. trades at 27.2×. Nephros Inc. grew revenue faster over the last twelve months: 24.2% against −80.8%. Nephros Inc. has the higher net margin (8.38% vs 0.00%) and the higher return on invested capital (14.1% vs −68.6%). Across the 17 metrics below, Nephros Inc. leads on 14 and Zentek Ltd. on 3.

Valuation

Metric NEPH ZTEKF Medical Instruments & Supplies median
P/E 27.15 n/m 34.17
P/S 2.22 499.24 2.83
P/B 3.84 3.29 2.82
Price to free cash flow n/m n/m 25.69
EV/EBITDA 23.83 n/m 16.08
EV/Sales 2.03 412.46 3.06
Earnings yield 3.68% (14.29%) (1.84%)
Free cash flow yield (1.71%) (7.60%) 0.17%

Profitability

Metric NEPH ZTEKF Medical Instruments & Supplies median
Gross margin 61.26% 0.00% 54.62%
Operating margin 7.92% 0.00% 1.64%
Net margin 8.38% 0.00% 0.00%
Free cash flow margin (3.19%) 0.00% 1.61%
Return on equity 16.10% (53.33%) 0.00%
Return on assets 12.39% (42.42%) 0.00%
Return on invested capital 14.11% (68.55%) 0.00%

Growth

Metric NEPH ZTEKF Medical Instruments & Supplies median
Revenue growth (TTM) 24.20% (80.83%) 9.20%
EPS growth (last fiscal year) 1,471.43% 0.00% —
Revenue growth, 5-year CAGR 17.02% — 9.48%
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 0.08
Current ratio 4.07 4.65 2.49
Net debt to EBITDA (4.20) (0.04) 0.83

Dividend

Metric NEPH ZTEKF Medical Instruments & Supplies median
Dividend yield — — 0.99%
Payout ratio 0.00 0.00 0.00

Size

Metric NEPH ZTEKF Medical Instruments & Supplies median
Market cap 44.96m 62.30m 938.39m

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