Intuitive Surgical (NASDAQ:ISRG) versus ClearPoint Neuro (NASDAQ:CLPT) Financial Analysis

ClearPoint Neuro (NASDAQ:CLPT) and Intuitive Surgical (NASDAQ:ISRG) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares ClearPoint Neuro and Intuitive Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ClearPoint Neuro	-71.57%	-140.96%	-36.98%
Intuitive Surgical	28.15%	15.98%	14.07%

Risk and Volatility

ClearPoint Neuro has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Valuation and Earnings

This table compares ClearPoint Neuro and Intuitive Surgical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ClearPoint Neuro	$40.61 million	13.68	-$25.54 million	($1.01)	-18.35
Intuitive Surgical	$10.06 billion	14.19	$2.86 billion	$8.25	48.87

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

Insider & Institutional Ownership

30.1% of ClearPoint Neuro shares are owned by institutional investors. Comparatively, 83.6% of Intuitive Surgical shares are owned by institutional investors. 6.9% of ClearPoint Neuro shares are owned by company insiders. Comparatively, 0.6% of Intuitive Surgical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ClearPoint Neuro and Intuitive Surgical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ClearPoint Neuro	1	0	2	0	2.33
Intuitive Surgical	1	7	19	0	2.67

ClearPoint Neuro presently has a consensus target price of $23.00, indicating a potential upside of 24.12%. Intuitive Surgical has a consensus target price of $573.42, indicating a potential upside of 42.22%. Given Intuitive Surgical’s stronger consensus rating and higher possible upside, analysts clearly believe Intuitive Surgical is more favorable than ClearPoint Neuro.

Summary

Intuitive Surgical beats ClearPoint Neuro on 13 of the 14 factors compared between the two stocks.

About ClearPoint Neuro

ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. It develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. The company offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. It has license and collaboration agreement with Clinical Laserthermia Systems AB; license and research agreement with Koninklijke Philips N.V., UCB Biopharma SRL, and University of California and San Francisco; and development and license agreement with NE Scientific, LLC. The company was formerly known as MRI Interventions, Inc. and changed its name to ClearPoint Neuro, Inc. in February 2020. ClearPoint Neuro, Inc. was incorporated in 1998 and is headquartered in Solana Beach, California.

About Intuitive Surgical

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.