Comparing Pressure BioSciences (OTCMKTS:PBIO) and Neuronetics (NASDAQ:STIM)

Neuronetics (NASDAQ:STIM) and Pressure BioSciences (OTCMKTS:PBIO) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Profitability

This table compares Neuronetics and Pressure BioSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-33.88%	-131.15%	-31.26%
Pressure BioSciences	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Neuronetics and Pressure BioSciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	1	0	2.00
Pressure BioSciences	0	0	0	0	0.00

Neuronetics presently has a consensus target price of $7.00, suggesting a potential upside of 234.93%. Given Neuronetics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Neuronetics is more favorable than Pressure BioSciences.

Volatility & Risk

Neuronetics has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Pressure BioSciences has a beta of -0.19, suggesting that its share price is 119% less volatile than the S&P 500.

Institutional & Insider Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 0.0% of Pressure BioSciences shares are held by institutional investors. 8.7% of Neuronetics shares are held by company insiders. Comparatively, 10.8% of Pressure BioSciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Neuronetics and Pressure BioSciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$74.89 million	1.91	-$43.71 million	($0.82)	-2.55
Pressure BioSciences	$1.98 million	0.01	-$29.31 million	($0.96)	0.00

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

Summary

Neuronetics beats Pressure BioSciences on 8 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 Pressure BioSciences

Pressure BioSciences, Inc. develops and sells pressure-based platform solutions in the North America, Europe, and Asia. The company's pressure cycling technology (PCT) technology uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to control the actions of molecules in biological samples, including cells and tissues from human, animal, plant, and microbial sources. It offers Barocycler instrumentations comprising Barocycler 2320EXT, Barocycler HUB880, Barocycler HUB440, and the Shredder SG3. The company also distributes cell disruption equipment, parts, and consumables. In addition, it offers Barocycler consumable products, such as PCT MicroTubes, PCT MicroCaps, PCT-Micro Pestle, and pressure used to lyse samples for extraction tubes, as well as application specific kits, including consumable products and reagents. The company serves researchers at academic laboratories, government agencies, biotechnology companies, pharmaceutical firms, and other life science institutions. It has collaborations with RedShiftBio Inc.; Inova Schar Cancer Center; NYU; Leica Microsystems, GmbH; Steinbeis Centre for biopolymer analysis and biological mass spectrometry; The Ohio State University; University of Delaware; and Cedars Sinai Medical Center. The company was formerly known as Boston Biomedica, Inc. and changed its name to Pressure BioSciences, Inc. in September 2014. The company was incorporated in 1978 and is based in South Easton, Massachusetts.