Analyzing Neuronetics (NASDAQ:STIM) and IDEXX Laboratories (NASDAQ:IDXX)

Neuronetics (NASDAQ:STIM) and IDEXX Laboratories (NASDAQ:IDXX) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Neuronetics and IDEXX Laboratories”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$129.87 million	0.75	-$43.71 million	($0.82)	-1.74
IDEXX Laboratories	$3.90 billion	14.09	$887.87 million	$12.61	54.56

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

Volatility & Risk

Neuronetics has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, IDEXX Laboratories has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Neuronetics and IDEXX Laboratories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	1	0	2.00
IDEXX Laboratories	0	4	7	0	2.64

Neuronetics currently has a consensus price target of $7.00, suggesting a potential upside of 391.23%. IDEXX Laboratories has a consensus price target of $763.50, suggesting a potential upside of 10.98%. Given Neuronetics’ higher probable upside, equities analysts plainly believe Neuronetics is more favorable than IDEXX Laboratories.

Profitability

This table compares Neuronetics and IDEXX Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-33.88%	-131.15%	-31.26%
IDEXX Laboratories	24.65%	67.78%	31.08%

Insider and Institutional Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 87.8% of IDEXX Laboratories shares are held by institutional investors. 8.7% of Neuronetics shares are held by insiders. Comparatively, 1.0% of IDEXX Laboratories shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

IDEXX Laboratories beats Neuronetics on 12 of the 14 factors compared between the two stocks.

About Neuronetics

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

About IDEXX Laboratories

IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. Additionally, the company offers human medical point-of-care products and laboratory diagnostics services. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.