Neurometrix (NASDAQ: NURO) and Orthofix International (NASDAQ:OFIX) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Neurometrix and Orthofix International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neurometrix $12.03 million 0.33 -$14.91 million ($17.04) -0.10
Orthofix International $409.79 million 2.35 $3.05 million $0.07 755.82

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

Institutional and Insider Ownership

12.0% of Neurometrix shares are held by institutional investors. Comparatively, 94.6% of Orthofix International shares are held by institutional investors. 4.4% of Neurometrix shares are held by company insiders. Comparatively, 5.6% of Orthofix International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Neurometrix has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Orthofix International has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Neurometrix and Orthofix International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neurometrix 0 0 1 0 3.00
Orthofix International 0 0 5 0 3.00

Neurometrix currently has a consensus price target of $3.00, indicating a potential upside of 76.47%. Orthofix International has a consensus price target of $53.30, indicating a potential upside of 0.76%. Given Neurometrix’s higher probable upside, research analysts clearly believe Neurometrix is more favorable than Orthofix International.

Profitability

This table compares Neurometrix and Orthofix International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neurometrix -80.57% -232.71% -140.16%
Orthofix International 0.33% 10.26% 7.57%

Summary

Orthofix International beats Neurometrix on 10 of the 12 factors compared between the two stocks.

About Neurometrix

NeuroMetrix, Inc. is a healthcare company combining bioelectrical and digital medicine to address chronic health conditions, including chronic pain, sleep disorders and diabetes. The Company is engaged in the sale of medical equipment, and consumables and accessories. It has two principal product lines: Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. Its products include ADVANCE NCS/EMG System (the ADVANCE System), Quell, SENSUS and DPNCheck. Quell is a wearable device for relief of chronic intractable pain, such as nerve pain due to diabetes and lower back problems. The SENSUS pain therapy device, the technological predecessor to Quell, is a prescription neuro-stimulation device based on transcutaneous electrical nerve stimulation (TENS) for relief of chronic, intractable pain. DPNCheck is a quantitative nerve conduction test. ADVANCE System is a platform for the performance of traditional nerve conduction studies.

About Orthofix International

Orthofix International N.V. (Orthofix) is a global medical device company. The Company is focused on providing reconstructive and regenerative orthopedic and spine solutions to physicians. The company operates in four segments: BioStim, Biologics, Extremity Fixation and Spine Fixation. Its BioStim solutions products include Cervical-Stim, Spinal-Stim and Physio-Stim. The Biologics products include AlloQuent Structural Allografts, Trinity ELITE, Trinity Evolution and VersaShield. The Extremity Fixation products include Fixator, Eight-Plate Guided Growth System and Contours VPS Volar Plating System III. The Spine Fixation products include Hallmark Anterior Cervical Plate System, Ascent LE Posterior Occipital Cervico-Thoracic (POCT) System, Firebird Deformity Correction System, Phoenix Minimally Invasive Spinal Fixation System, Samba-Screw System, LONESTAR Cervical Stand Alone (CSA), SKYHAWK Lateral Interbody Fusion System & Lateral Plate System and CENTURION POCT System.

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