Analyzing NeuroPace (NASDAQ:NPCE) and ENDRA Life Sciences (NASDAQ:NDRA)

NeuroPace (NASDAQ:NPCE) and ENDRA Life Sciences (NASDAQ:NDRA) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk and Volatility

NeuroPace has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, ENDRA Life Sciences has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500.

Earnings & Valuation

This table compares NeuroPace and ENDRA Life Sciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroPace	$99.99 million	5.33	-$21.47 million	($0.65)	-24.05
ENDRA Life Sciences	N/A	N/A	-$7.03 million	($8.15)	-0.58

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

Analyst Ratings

This is a breakdown of current ratings for NeuroPace and ENDRA Life Sciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	1	1	4	2	2.88
ENDRA Life Sciences	1	0	1	0	2.00

NeuroPace presently has a consensus price target of $18.83, suggesting a potential upside of 20.49%. ENDRA Life Sciences has a consensus price target of $25.00, suggesting a potential upside of 425.21%. Given ENDRA Life Sciences’ higher probable upside, analysts clearly believe ENDRA Life Sciences is more favorable than NeuroPace.

Profitability

This table compares NeuroPace and ENDRA Life Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-21.67%	-108.20%	-18.50%
ENDRA Life Sciences	N/A	-433.64%	-204.58%

Insider & Institutional Ownership

78.8% of NeuroPace shares are owned by institutional investors. Comparatively, 1.2% of ENDRA Life Sciences shares are owned by institutional investors. 20.5% of NeuroPace shares are owned by insiders. Comparatively, 10.0% of ENDRA Life Sciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

NeuroPace beats ENDRA Life Sciences on 10 of the 14 factors compared between the two stocks.

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.

About ENDRA Life Sciences

ENDRA Life Sciences Inc. develops technologies to improve the capabilities of clinical diagnostic ultrasound. The company is developing thermo-acoustic enhanced ultrasound technology that uses radio frequency pulses to generate ultrasonic waves in tissue to create high-contrast images for use in the treatment of nonalcoholic fatty liver disease, as well as in tissue composition, temperature monitoring, vascular imaging, and tissue perfusion. It has a collaborative research agreement with General Electric Company. ENDRA Life Sciences Inc. was incorporated in 2007 and is based in Ann Arbor, Michigan.