Neuronetics (NASDAQ:STIM – Get Free Report) and Trinity Biotech (NASDAQ:TRIB – 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 dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Profitability
This table compares Neuronetics and Trinity Biotech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -19.62% | -125.11% | -22.15% |
| Trinity Biotech | -70.06% | N/A | -32.13% |
Valuation and Earnings
This table compares Neuronetics and Trinity Biotech”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $149.16 million | 1.48 | -$39.00 million | ($0.44) | -6.59 |
| Trinity Biotech | $43.78 million | 0.13 | -$37.38 million | ($44.26) | -0.16 |
Trinity Biotech has lower revenue, but higher earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than Trinity Biotech, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Neuronetics has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Trinity Biotech has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Neuronetics and Trinity Biotech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 1 | 0 | 5 | 0 | 2.67 |
| Trinity Biotech | 1 | 0 | 0 | 0 | 1.00 |
Neuronetics presently has a consensus price target of $4.67, suggesting a potential upside of 60.92%. Given Neuronetics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Neuronetics is more favorable than Trinity Biotech.
Institutional & Insider Ownership
53.6% of Neuronetics shares are held by institutional investors. Comparatively, 79.0% of Trinity Biotech shares are held by institutional investors. 8.4% of Neuronetics shares are held by company insiders. Comparatively, 8.2% of Trinity Biotech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Neuronetics beats Trinity Biotech on 10 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 Trinity Biotech
Trinity Biotech plc acquires, together with its subsidiaries, develops, acquires, manufactures, and markets medical diagnostic products for the clinical laboratory and point-of-care (POC) segments of the diagnostic market in the Americas and Ireland. The company offers clinical laboratory products, including diagnostic tests and instrumentation, which detects infectious diseases; sexually transmitted diseases consisting of syphilis and herpes; SARS-CoV-2; and epstein barr, measles, mumps, toxoplasmosis, cytomegalovirus, rubella, varicella and other viral pathogens, as well as products for the in-vitro diagnostic testing for haemoglobin A1c used in the monitoring and diagnosis of diabetes, and identifying those who are at a risk of developing diabetes. It also provides laboratory-testing services for Sjogren's syndrome, hearing loss, celiac disease, lupus, rheumatoid arthritis, systemic sclerosis, and other laboratory-testing services for autoimmune disorders. The company develops, manufactures, and sells products in the immunofluorescence assay, enzyme-linked immunosorbent, western blot, and line immunoassay formats; and provides reagent products, such as ACE, bile acids, oxalate, and glucose-6-phosphate dehydrogenase for diagnosis of liver and kidney diseases, as well as haemolytic anaemia. It serves public health authorities, non-governmental organisations, and clinical and reference laboratories through its direct sales force, as well as through a network of independent distributors and strategic partners. Trinity Biotech plc was incorporated in 1992 and is headquartered in Bray, Ireland.
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