Critical Review: NeuroPace (NASDAQ:NPCE) vs. Integer (NYSE:ITGR)

Integer (NYSE:ITGR) and NeuroPace (NASDAQ:NPCE) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

99.3% of Integer shares are owned by institutional investors. Comparatively, 78.8% of NeuroPace shares are owned by institutional investors. 2.2% of Integer shares are owned by insiders. Comparatively, 20.5% of NeuroPace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Integer and NeuroPace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integer	$1.85 billion	1.61	$102.81 million	$2.87	30.26
NeuroPace	$99.99 million	4.93	-$21.47 million	($0.66)	-22.20

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

Risk & Volatility

Integer has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, NeuroPace has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Integer and NeuroPace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integer	0	6	4	0	2.40
NeuroPace	1	1	4	2	2.88

Integer currently has a consensus price target of $102.00, suggesting a potential upside of 17.46%. NeuroPace has a consensus price target of $18.67, suggesting a potential upside of 27.42%. Given NeuroPace’s stronger consensus rating and higher probable upside, analysts clearly believe NeuroPace is more favorable than Integer.

Profitability

This table compares Integer and NeuroPace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integer	5.55%	13.26%	6.69%
NeuroPace	-21.47%	-105.67%	-20.01%

Summary

Integer beats NeuroPace on 8 of the 14 factors compared between the two stocks.

About Integer

Integer Holdings Corporation operates as a medical device outsource manufacturer in the United States, Puerto Rico, Costa Rica, and internationally. It operates through two segments, Medical and Non-Medical. The company offers products for interventional cardiology, structural heart, heart failure, peripheral vascular, neurovascular, interventional oncology, electrophysiology, vascular access, infusion therapy, hemodialysis, non-vascular, urology, and gastroenterology procedures. It also provides cardiac rhythm management products, including implantable pacemakers, implantable cardioverter defibrillators, insertable cardiac monitors, implantable cardiac pacing and defibrillation leads, and heart failure therapies; neuromodulation products, such as implantable spinal cord stimulators; and non-rechargeable batteries, feedthroughs, device enclosures, machined components, and lead components and sub-assemblies. In addition, the company offers rechargeable batteries and chargers; and arthroscopic, laparoscopic, and general surgery devices and components, such as harmonic scalpels, shaver blades, burr shavers, radio frequency probes, biopsy probes, trocars, electrocautery components, wound dressings, GERD treatment components, and phacoemulsification needles. Further, it provides orthopedic products that include instruments used in hip, knee, and spine surgeries, as well as reamers and chisels. Additionally, the company offers customized battery power and power management systems, and battery solutions for the energy, military, and environmental markets. Furthermore, the company provides medical technologies. It serves multi-national original equipment manufacturers and their affiliated subsidiaries in the cardiac rhythm management, neuromodulation, orthopedics, vascular, and advanced surgical and portable medical markets. Integer Holdings Corporation was founded in 1970 and is headquartered in Plano, Texas.

About NeuroPace

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.