Neuronetics (NASDAQ:STIM – Get Free Report) and Utah Medical Products (NASDAQ:UTMD – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Analyst Ratings
This is a summary of recent ratings for Neuronetics and Utah Medical Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 1 | 0 | 4 | 0 | 2.60 |
| Utah Medical Products | 0 | 1 | 0 | 0 | 2.00 |
Neuronetics currently has a consensus target price of $5.00, suggesting a potential upside of 129.36%. Given Neuronetics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Neuronetics is more favorable than Utah Medical Products.
Volatility and Risk
Neuronetics has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Utah Medical Products has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Institutional and Insider Ownership
53.6% of Neuronetics shares are held by institutional investors. Comparatively, 69.6% of Utah Medical Products shares are held by institutional investors. 8.4% of Neuronetics shares are held by company insiders. Comparatively, 8.0% of Utah Medical Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Neuronetics and Utah Medical Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -14.45% | -103.12% | -16.80% |
| Utah Medical Products | 30.48% | 8.83% | 8.59% |
Earnings and Valuation
This table compares Neuronetics and Utah Medical Products”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $149.16 million | 1.11 | -$39.00 million | ($0.33) | -6.61 |
| Utah Medical Products | $38.52 million | 6.02 | $11.29 million | $3.34 | 21.82 |
Utah Medical Products has lower revenue, but higher earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than Utah Medical Products, indicating that it is currently the more affordable of the two stocks.
Summary
Utah Medical Products beats Neuronetics on 8 of the 14 factors compared between the two stocks.
About Neuronetics
Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
About Utah Medical Products
Utah Medical Products, Inc. develops, manufactures, and distributes medical devices for the healthcare industry worldwide. It offers fetal monitoring accessories, vacuum-assisted delivery systems, and other labor and delivery tools; DISPOSA-HOOD infant respiratory hoods; and DELTRAN PLUS blood pressure monitoring systems. It also provides GESCO, an umbilical vessel catheters, including DIALY-NATE disposable peritoneal dialysis sets; PALA-NATE silicone oral protection devices; URI-CATH urinary drainage systems; NUTRI-CATH\NUTRI-LOK feeding device; PICC-NATE, a percutaneous intraepithelial central venous catheter; MYELO-NATE lumbar sampling kits; HEMO-NATE disposable filters; and catheterization procedure tray of instruments and supplies. In addition, the company offers LETZ system to excise cervical intraepithelial neoplasia and other lower genital tract lesions; loop, ball, and needle electrodes; FILTRESSE evacuators; other specialty electrodes and supplies, and gynecologic tools; Femcare trocars, cannulae, laparoscopic instruments, and accessories; and EPITOME and OptiMicro electrosurgical devices. Further, it provides Filshie Clip female surgical contraception devices; PATHFINDER PLUS, an endoscopic irrigation devices; suprapubic catheterization; LIBERTY, an urinary incontinence treatment and control systems; ENDOCURETTE, a curette for uterine endometrial tissue sampling; TVUS/HSG-Cath to assess abnormal or dysfunctional uterine bleeding and other abnormalities of uterus; and LUMIN, a tool to manipulate the uterus in laparoscopic procedures. Additionally, it offers DELTRAN, a disposable pressure transducer; high-pressure and piezo-resistive transducer assemblies; and pressure monitoring accessories, components, and other molded parts. It serves neonatal intensive care units, labor and delivery departments, women's health centers in hospitals, outpatient clinics, and physician's offices. The company was incorporated in 1978 and is headquartered in Midvale, Utah.
Receive News & Ratings for Neuronetics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Neuronetics and related companies with MarketBeat.com's FREE daily email newsletter.
