CareFusion (NYSE: CFN) and Neurometrix (NASDAQ:NURO) are both medical equipment, supplies & distribution – nec companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Insider and Institutional Ownership
12.6% of Neurometrix shares are owned by institutional investors. 4.4% of Neurometrix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for CareFusion and Neurometrix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Neurometrix has a consensus price target of $3.00, indicating a potential upside of 132.56%. Given Neurometrix’s higher probable upside, analysts plainly believe Neurometrix is more favorable than CareFusion.
This table compares CareFusion and Neurometrix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares CareFusion and Neurometrix’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Neurometrix||$12.03 million||0.25||-$14.91 million||($17.01)||-0.08|
CareFusion has higher earnings, but lower revenue than Neurometrix. Neurometrix is trading at a lower price-to-earnings ratio than CareFusion, indicating that it is currently the more affordable of the two stocks.
CareFusion Company Profile
CareFusion Corporation is a global medical technology company. The Company operates in two business segments: Medical Systems and Procedural Solutions. The Company’s primary product brands include: Alaris intravenous (IV) infusion systems; Pyxis and Rowa automated medication dispensing and supply management systems; AVEA, Vela and LTV Series respiratory ventilators; ChloraPrep skin antiseptic products; MaxGuard, MaxPlus, MaxZero, SmartSite and Texium needle-free IV infusion valves, administration sets and accessories; V. Mueller and Snowden-Pencer open surgical and laparoscopic instrumentation; PleurX, Achieve and Temno interventional specialty products; AirLife disposable ventilator circuits and oxygen masks used for providing respiratory therapy; Vital Signs single-use consumables for respiratory care and anesthesiology; Jaeger and SensorMedics cardiopulmonary diagnostic equipment, and MedMined data mining surveillance software and analytics.
Neurometrix Company Profile
NeuroMetrix, Inc. is a healthcare company combining bioelectrical and digital medicine to address chronic health conditions, including chronic pain, sleep disorders and diabetes. The Company is engaged in the sale of medical equipment, and consumables and accessories. It has two principal product lines: Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. Its products include ADVANCE NCS/EMG System (the ADVANCE System), Quell, SENSUS and DPNCheck. Quell is a wearable device for relief of chronic intractable pain, such as nerve pain due to diabetes and lower back problems. The SENSUS pain therapy device, the technological predecessor to Quell, is a prescription neuro-stimulation device based on transcutaneous electrical nerve stimulation (TENS) for relief of chronic, intractable pain. DPNCheck is a quantitative nerve conduction test. ADVANCE System is a platform for the performance of traditional nerve conduction studies.
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