C.R. Bard (NYSE: BCR) and Nevro Corp. (NYSE:NVRO) are both mid-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares C.R. Bard and Nevro Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
C.R. Bard 14.99% 48.70% 15.89%
Nevro Corp. -14.33% -16.25% -9.43%

Dividends

C.R. Bard pays an annual dividend of $1.04 per share and has a dividend yield of 0.3%. Nevro Corp. does not pay a dividend. C.R. Bard pays out 13.7% of its earnings in the form of a dividend. Nevro Corp. has increased its dividend for 45 consecutive years.

Volatility & Risk

C.R. Bard has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Nevro Corp. has a beta of -0.67, indicating that its share price is 167% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for C.R. Bard and Nevro Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
C.R. Bard 0 7 0 0 2.00
Nevro Corp. 0 1 6 0 2.86

C.R. Bard presently has a consensus price target of $282.29, indicating a potential downside of 11.34%. Nevro Corp. has a consensus price target of $102.00, indicating a potential upside of 15.29%. Given Nevro Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Nevro Corp. is more favorable than C.R. Bard.

Valuation & Earnings

This table compares C.R. Bard and Nevro Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
C.R. Bard $3.83 billion 6.04 $1.18 billion $7.61 41.84
Nevro Corp. $277.91 million 9.37 -$22.57 million ($1.38) -64.11

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

Institutional and Insider Ownership

79.2% of C.R. Bard shares are held by institutional investors. 0.8% of C.R. Bard shares are held by company insiders. Comparatively, 12.1% of Nevro Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

C.R. Bard beats Nevro Corp. on 9 of the 16 factors compared between the two stocks.

C.R. Bard Company Profile

C. R. Bard, Inc. (Bard) is engaged in designing, manufacturing, packaging, distribution and sale of medical, surgical, diagnostic and patient care devices. The Company operates through the manufacture and sale of medical devices segment. It sells a range of products to hospitals, individual healthcare professionals, extended care facilities and alternate site facilities on a global basis. Its vascular products cover a range of minimally invasive devices for the treatment of peripheral vascular disease and end-stage renal disease. Its urology products include basic urology drainage products, fecal and urinary continence products, urological specialty products and Targeted Temperature Management products. Its oncology products cover a range of devices used in the treatment and management of various cancers, and other diseases and disorders. Its surgical specialty products include implanted patches and fixation devices for hernia and soft tissue repairs.

Nevro Corp. Company Profile

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.

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