Beta Bionics (NASDAQ:BBNX – Get Free Report) and Neuronetics (NASDAQ:STIM – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
53.6% of Neuronetics shares are owned by institutional investors. 5.3% of Beta Bionics shares are owned by insiders. Comparatively, 8.4% of Neuronetics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Beta Bionics and Neuronetics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beta Bionics | $100.25 million | 6.46 | -$73.20 million | ($1.51) | -9.62 |
| Neuronetics | $149.16 million | 0.62 | -$39.00 million | ($0.54) | -2.46 |
Neuronetics has higher revenue and earnings than Beta Bionics. Beta Bionics is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Beta Bionics and Neuronetics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beta Bionics | 1 | 3 | 6 | 1 | 2.64 |
| Neuronetics | 1 | 0 | 1 | 0 | 2.00 |
Beta Bionics currently has a consensus target price of $19.70, indicating a potential upside of 35.58%. Neuronetics has a consensus target price of $3.00, indicating a potential upside of 125.56%. Given Neuronetics’ higher possible upside, analysts plainly believe Neuronetics is more favorable than Beta Bionics.
Volatility and Risk
Beta Bionics has a beta of 3.4, indicating that its share price is 240% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Profitability
This table compares Beta Bionics and Neuronetics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beta Bionics | -60.27% | -23.00% | -20.55% |
| Neuronetics | -24.48% | -139.83% | -27.13% |
Summary
Neuronetics beats Beta Bionics on 8 of the 15 factors compared between the two stocks.
About Beta Bionics
Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.
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.
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