Nevro (NYSE: NVRO) and MiMedx Group (NASDAQ:MDXG) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nevro and MiMedx Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nevro 0 1 6 0 2.86
MiMedx Group 1 0 3 0 2.50

Nevro presently has a consensus price target of $100.57, indicating a potential upside of 32.59%. MiMedx Group has a consensus price target of $17.00, indicating a potential upside of 53.15%. Given MiMedx Group’s higher possible upside, analysts clearly believe MiMedx Group is more favorable than Nevro.

Insider & Institutional Ownership

62.2% of MiMedx Group shares are owned by institutional investors. 12.1% of Nevro shares are owned by company insiders. Comparatively, 12.4% of MiMedx Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nevro and MiMedx Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Nevro $228.50 million 9.84 -$31.77 million ($1.45) -52.31
MiMedx Group $245.01 million 5.03 $11.97 million $0.30 37.00

MiMedx Group has higher revenue and earnings than Nevro. Nevro is trading at a lower price-to-earnings ratio than MiMedx Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Nevro has a beta of -0.7, suggesting that its share price is 170% less volatile than the S&P 500. Comparatively, MiMedx Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Nevro and MiMedx Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nevro -14.09% -17.27% -9.88%
MiMedx Group 11.64% 17.49% 12.69%

Summary

MiMedx Group beats Nevro on 10 of the 13 factors compared between the two stocks.

About Nevro

Nevro Corp. is a global medical device company. The Company focuses on providing products that improve the quality of life of patients suffering from chronic pain. The Company has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its HF10 therapy is designed to deliver neuromodulation solutions for treating chronic pain. HF10 therapy enables patients to achieve sustained pain relief without paresthesia, thus enabling its patients to avoid the uncomfortable shocking or jolting sensations commonly associated with paresthesia. HF10 therapy relies on consistent anatomical lead placement. As of December 31, 2016, it was investigating the use of HF10 therapy to address additional indications, such as chronic upper limb and neck pain, painful neuropathies and non-surgical refractory back pain. The Senza system is approved to create electrical impulses from 2 hertz (Hz) to 10,000 Hz.

About MiMedx Group

MiMedx Group, Inc. is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants human placental tissue, skin and bone. The Company’s Regenerative Biomaterials segment includes the design, manufacture, and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories. Its biomaterial platform technologies include AmnioFix, EpiFix, OrthoFlo, Physio, AlloBurn, and CollaFix. AmnioFix and EpiFix are its tissue technologies processed from human amniotic membrane derived from donated placentas. OrthoFlo is amniotic fluid-derived allograft for homologous use. Physio is a bone grafting material consists of bone tissue with no added carrier. CollaFix, its new brand, is its collagen fiber technology designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair.

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