Nevro (NVRO) & NuVasive (NUVA) Head to Head Survey

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

Analyst Recommendations

This is a breakdown of recent recommendations for Nevro and NuVasive, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nevro 0 1 6 0 2.86
NuVasive 0 4 11 0 2.73

Nevro presently has a consensus price target of $99.71, suggesting a potential upside of 35.26%. NuVasive has a consensus price target of $71.64, suggesting a potential upside of 55.64%. Given NuVasive’s higher possible upside, analysts plainly believe NuVasive is more favorable than Nevro.

Risk and Volatility

Nevro has a beta of -0.59, suggesting that its stock price is 159% less volatile than the S&P 500. Comparatively, NuVasive has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Profitability

This table compares Nevro and NuVasive’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%
NuVasive 6.36% 13.65% 6.17%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nevro $228.50 million 9.56 -$31.77 million ($1.45) -50.84
NuVasive $962.07 million 2.44 $37.14 million $1.19 38.68

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

Summary

NuVasive beats Nevro on 10 of the 12 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 NuVasive

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.

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