Reviewing NeuroPace (NPCE) and Its Competitors

NeuroPace (NASDAQ:NPCE) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its peers? We will compare NeuroPace to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	1	1	7	1	2.80
NeuroPace Competitors	4242	10453	18159	819	2.46

NeuroPace presently has a consensus target price of $19.33, suggesting a potential upside of 46.99%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 22.41%. Given NeuroPace’s stronger consensus rating and higher probable upside, equities analysts clearly believe NeuroPace is more favorable than its peers.

Insider and Institutional Ownership

78.8% of NeuroPace shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 19.2% of NeuroPace shares are owned by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

NeuroPace has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, NeuroPace’s peers have a beta of 2.51, indicating that their average share price is 151% more volatile than the S&P 500.

Profitability

This table compares NeuroPace and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-19.34%	-105.64%	-16.51%
NeuroPace Competitors	-278.47%	-150.38%	-22.01%

Earnings and Valuation

This table compares NeuroPace and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NeuroPace	$106.99 million	-$21.47 million	-23.08
NeuroPace Competitors	$1.89 billion	$138.15 million	11.10

NeuroPace’s peers have higher revenue and earnings than NeuroPace. NeuroPace is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

NeuroPace beats its peers on 9 of the 13 factors compared.

NeuroPace Company Profile

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip 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.