NeuroPace (NASDAQ:NPCE) & NeuroMetrix (NASDAQ:NURO) Critical Contrast

NeuroMetrix (NASDAQ:NUROGet Free Report) and NeuroPace (NASDAQ:NPCEGet Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

NeuroMetrix has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500. Comparatively, NeuroPace has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500.

Institutional and Insider Ownership

5.1% of NeuroMetrix shares are owned by institutional investors. Comparatively, 67.7% of NeuroPace shares are owned by institutional investors. 7.5% of NeuroMetrix shares are owned by insiders. Comparatively, 27.5% of NeuroPace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares NeuroMetrix and NeuroPace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeuroMetrix -86.64% -25.71% -24.14%
NeuroPace -62.96% -151.83% -35.93%

Analyst Recommendations

This is a breakdown of recent recommendations for NeuroMetrix and NeuroPace, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeuroMetrix 0 0 0 0 N/A
NeuroPace 0 2 5 0 2.71

NeuroPace has a consensus price target of $12.00, suggesting a potential downside of 23.57%. Given NeuroPace’s higher possible upside, analysts clearly believe NeuroPace is more favorable than NeuroMetrix.

Valuation & Earnings

This table compares NeuroMetrix and NeuroPace’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeuroMetrix $8.26 million 0.39 -$4.42 million ($5.52) -0.55
NeuroPace $45.52 million 9.06 -$47.08 million ($1.50) -10.47

NeuroMetrix has higher earnings, but lower revenue than NeuroPace. NeuroPace is trading at a lower price-to-earnings ratio than NeuroMetrix, indicating that it is currently the more affordable of the two stocks.

Summary

NeuroPace beats NeuroMetrix on 8 of the 13 factors compared between the two stocks.

About NeuroMetrix

(Get Free Report)

NeuroMetrix, Inc., a commercial stage neurotechnology company, engages in designing, building, and marketing medical devices that stimulate and analyze nerve response for diagnostic and therapeutic purposes in the United States, Europe, Japan, China, the Middle East, and Mexico. Its primary marketed products include DPNCheck, a nerve conduction test that is used to evaluate peripheral neuropathies, such as diabetic peripheral neuropathy; Quell, a wearable device for symptomatic relief and management of chronic pain; and ADVANCE system, a platform for the performance of nerve conduction studies. The company offers its products to managed care organizations, endocrinologists, podiatrists, and primary care physicians; occupational health, primary care, internal medicine, orthopedic, and hand surgeons; and pain medicine physicians, neurologists, physical medicine and rehabilitation physicians, and neurosurgeons. NeuroMetrix, Inc. was incorporated in 1996 and is headquartered in Woburn, Massachusetts.

About NeuroPace

(Get Free Report)

NeuroPace, Inc. operates as a medical device company in the United States. It develops and sells RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. The company's RNS system also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip leads and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.

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