NuVasive (NASDAQ: NUVA) and Neogen (NASDAQ:NEOG) are both mid-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Risk and Volatility
NuVasive has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Neogen has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
64.5% of Neogen shares are owned by institutional investors. 1.2% of NuVasive shares are owned by company insiders. Comparatively, 4.2% of Neogen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares NuVasive and Neogen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for NuVasive and Neogen, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NuVasive presently has a consensus target price of $71.64, indicating a potential upside of 37.80%. Neogen has a consensus target price of $61.33, indicating a potential upside of 4.10%. Given NuVasive’s stronger consensus rating and higher possible upside, research analysts plainly believe NuVasive is more favorable than Neogen.
Earnings & Valuation
This table compares NuVasive and Neogen’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NuVasive||$962.07 million||2.75||$37.14 million||$1.19||43.69|
|Neogen||$361.59 million||8.40||$43.79 million||$1.01||58.63|
Neogen has lower revenue, but higher earnings than NuVasive. NuVasive is trading at a lower price-to-earnings ratio than Neogen, indicating that it is currently the more affordable of the two stocks.
Neogen beats NuVasive on 8 of the 14 factors compared between the two stocks.
NuVasive Company Profile
Nuvasive, Inc. is a medical device company. The Company focuses on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine surgery. Its product portfolio focuses on applications for spine fusion surgery, including biologics used to aid in the spinal fusion process. Its principal product offering includes a minimally-disruptive surgical platform called Maximum Access Surgery (MAS). The platform includes its software-driven nerve detection and avoidance systems, including NVM5, and intraoperative monitoring services and support; MaXcess, an integrated split-blade retractor system, and a range of implants and biologics. The platform combines three product categories: its MaXcess retractors, specialized implants and fixation products, and nerve monitoring systems and service offerings that collectively enable surgeons to detect and navigate around nerves, while directing customized access to the spine for implant delivery.
Neogen Company Profile
Neogen Corporation develops, manufactures and markets a range of products and services dedicated to food and animal safety. The Company operates through two segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a range of consumable products marketed to veterinarians and animal health product distributors. The Animal Safety segment also provides genetic identification services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents and disease in and around agricultural, food production and other facilities.
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