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ADAG vs SMTI

ADAG
Adagene Inc.
BULLISH
Price
$4.13
Market Cap
$194.7M
Sector
Healthcare
AI Confidence
85%
SMTI
Sanara MedTech Inc.
BEARISH
Price
$20.77
Market Cap
$190.4M
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
ADAG
--
SMTI
--
Forward P/E
ADAG
-5.74
SMTI
40.73
P/B Ratio
ADAG
5.14
SMTI
31.28
P/S Ratio
ADAG
1886.09
SMTI
1.85
EV/EBITDA
ADAG
-5.72
SMTI
18.8

Profitability

Gross Margin
ADAG
100.0%
SMTI
92.71%
Operating Margin
ADAG
-32283.6%
SMTI
10.5%
Profit Margin
ADAG
0.0%
SMTI
-36.43%
ROE
ADAG
-63.26%
SMTI
-1.75%
ROA
ADAG
-24.89%
SMTI
7.1%

Growth

Revenue Growth
ADAG
--
SMTI
4.7%
Earnings Growth
ADAG
--
SMTI
--

Financial Health

Debt/Equity
ADAG
0.18
SMTI
8.13
Current Ratio
ADAG
2.29
SMTI
1.8
Quick Ratio
ADAG
2.2
SMTI
1.53

Dividends

Dividend Yield
ADAG
--
SMTI
--
Payout Ratio
ADAG
0.0%
SMTI
0.0%

AI Verdict

ADAG BULLISH

ADAG's Piotroski F-Score of 4/9 indicates weak financial health, with negative profitability and high operating losses, but the company shows strong earnings surprise momentum and improving Q/Q EPS growth. Despite a lack of Altman Z-Score and Graham Number, the stock trades at a premium valuation (Price/Sales: 1886.09) due to high growth expectations in a sector with elevated average revenue growth. Insider sentiment is neutral, and analyst target price suggests significant upside potential. The recent 1-year return of +109.6% and strong quarterly beat rate support a bullish technical and earnings narrative.

Strengths
Strong earnings surprise history with 3 out of last 4 quarters beating estimates by an average of 39.09%
Improving Q/Q EPS growth of +58.3% and year-over-year EPS growth of +40.0%
High gross margin of 100.0% indicating strong product-level pricing power or low cost structure
Risks
Piotroski F-Score of 4/9 signals weak financial health, with negative ROE (-63.26%), ROA (-24.89%), and operating margin (-32,283.60%)
No positive operating cash flow or free cash flow; high reliance on external financing
Price/Sales ratio of 1886.09 is extremely elevated, indicating extreme growth premium
SMTI BEARISH

SMTI exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and an alarming Debt/Equity ratio of 8.13. While the company maintains an impressive gross margin of 92.71%, this is offset by consistent net losses and a track record of massive earnings misses (average surprise of -587.40% over the last 4 quarters). There is a stark disconnect between the 'Strong Buy' analyst consensus and the underlying deterministic health metrics, which suggest high insolvency risk. The stock's long-term price trajectory is sharply negative, despite a recent short-term bounce.

Strengths
Exceptional Gross Margin (92.71%) indicating strong product pricing power
Positive Operating Margin (10.50%) suggesting core business viability
Adequate short-term liquidity with a Current Ratio of 1.80
Risks
Extreme leverage with a Debt/Equity ratio of 8.13
Critical financial health indicated by Piotroski F-Score of 2/9
Chronic inability to meet earnings estimates with severe negative surprises

Compare Another Pair

ADAG vs SMTI: Head-to-Head Comparison

This page compares Adagene Inc. (ADAG) and Sanara MedTech Inc. (SMTI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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