PROCEPT BioRobotics (NASDAQ:PRCT) and NeuroPace (NASDAQ:NPCE) Head-To-Head Analysis

PROCEPT BioRobotics (NASDAQ:PRCT) and NeuroPace (NASDAQ:NPCE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Valuation & Earnings

This table compares PROCEPT BioRobotics and NeuroPace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$224.50 million	8.14	-$91.41 million	($1.53)	-21.39
NeuroPace	$79.91 million	6.82	-$27.14 million	($0.76)	-21.51

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

Analyst Recommendations

This is a summary of current recommendations for PROCEPT BioRobotics and NeuroPace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	1	2	9	1	2.77
NeuroPace	1	1	6	0	2.63

PROCEPT BioRobotics presently has a consensus price target of $53.40, indicating a potential upside of 63.20%. NeuroPace has a consensus price target of $18.50, indicating a potential upside of 13.15%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe PROCEPT BioRobotics is more favorable than NeuroPace.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-28.20%	-21.72%	-16.28%
NeuroPace	-25.28%	-136.60%	-22.94%

Insider & Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 78.8% of NeuroPace shares are held by institutional investors. 17.4% of PROCEPT BioRobotics shares are held by insiders. Comparatively, 20.5% of NeuroPace shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

PROCEPT BioRobotics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, NeuroPace has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Summary

PROCEPT BioRobotics beats NeuroPace on 10 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About NeuroPace

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.