Analyzing Nevro (NVRO) and T2 Biosystems (TTOO)

Nevro (NYSE: NVRO) and T2 Biosystems (NASDAQ:TTOO) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.


This table compares Nevro and T2 Biosystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nevro -11.22% -15.01% -8.47%
T2 Biosystems -1,497.70% -244.82% -78.53%

Earnings & Valuation

This table compares Nevro and T2 Biosystems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nevro $326.67 million 7.93 -$36.65 million ($1.25) -69.46
T2 Biosystems $4.10 million 61.17 -$54.80 million ($1.91) -3.66

Nevro has higher revenue and earnings than T2 Biosystems. Nevro is trading at a lower price-to-earnings ratio than T2 Biosystems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

52.6% of T2 Biosystems shares are held by institutional investors. 9.1% of Nevro shares are held by company insiders. Comparatively, 38.7% of T2 Biosystems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nevro and T2 Biosystems, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nevro 0 1 6 0 2.86
T2 Biosystems 1 2 3 0 2.33

Nevro currently has a consensus price target of $99.71, suggesting a potential upside of 14.85%. T2 Biosystems has a consensus price target of $5.70, suggesting a potential downside of 18.57%. Given Nevro’s stronger consensus rating and higher probable upside, research analysts plainly believe Nevro is more favorable than T2 Biosystems.

Risk & Volatility

Nevro has a beta of -0.51, meaning that its share price is 151% less volatile than the S&P 500. Comparatively, T2 Biosystems has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.


Nevro beats T2 Biosystems on 9 of the 14 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 T2 Biosystems

T2 Biosystems, Inc. is an in vitro diagnostics company engaged in developing a technology platform offering an alternative to diagnostic methodologies. The Company’s T2 Magnetic Resonance platform (T2MR) enables detection of pathogens, biomarkers and other abnormalities in a range of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection as one colony forming unit per milliliter (CFU/mL). The Company’s initial development efforts target sepsis, hemostasis and Lyme disease. T2MR is a miniaturized, magnetic resonance-based approach that measures how water molecules react in the presence of magnetic fields. Its platform detects a range of targets, including molecular targets, such as deoxyribonucleic acid (DNA), immunodiagnostics, such as proteins, and a range of hemostasis measurements. The Company offers T2Dx Instrument (T2Dx) and the T2Candida Panel.

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