Reviewing Nevro (NYSE:NVRO) and Medigus (NASDAQ:MDGS)

Medigus (NASDAQ:MDGS) and Nevro (NYSE:NVRO) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Medigus and Nevro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medigus	N/A	N/A	N/A
Nevro	-21.69%	-30.22%	-15.17%

Analyst Recommendations

This is a summary of current ratings and price targets for Medigus and Nevro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medigus	0	0	1	0	3.00
Nevro	1	11	1	0	2.00

Nevro has a consensus price target of $21.23, indicating a potential upside of 72.33%.

Earnings and Valuation

This table compares Medigus and Nevro’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medigus	$91.86 million	0.00	-$9.81 million	N/A	N/A
Nevro	$425.17 million	1.06	-$92.21 million	($2.57)	-4.79

Medigus has higher earnings, but lower revenue than Nevro.

Risk and Volatility

Medigus has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Nevro has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

0.3% of Medigus shares are owned by institutional investors. Comparatively, 95.5% of Nevro shares are owned by institutional investors. 2.2% of Medigus shares are owned by company insiders. Comparatively, 3.0% of Nevro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Medigus beats Nevro on 5 of the 9 factors compared between the two stocks.

About Medigus

Medigus Ltd., a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops, produces, and markets miniaturized imaging equipment, and visualization solutions; electric vehicles; and wireless vehicle battery charging technologies. Medigus Ltd. was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.