Financial Contrast: Neuronetics (NASDAQ:STIM) vs. Vicarious Surgical (NYSE:RBOT)

Neuronetics (NASDAQ:STIM) and Vicarious Surgical (NYSE:RBOT) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 47.3% of Vicarious Surgical shares are owned by institutional investors. 8.7% of Neuronetics shares are owned by insiders. Comparatively, 10.0% of Vicarious Surgical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Neuronetics and Vicarious Surgical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$129.87 million	0.77	-$43.71 million	($0.59)	-2.46
Vicarious Surgical	N/A	N/A	-$63.22 million	($8.26)	-0.12

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Neuronetics and Vicarious Surgical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	1	0	2.00
Vicarious Surgical	1	2	0	0	1.67

Neuronetics currently has a consensus price target of $3.00, suggesting a potential upside of 106.90%. Vicarious Surgical has a consensus price target of $7.00, suggesting a potential upside of 579.61%. Given Vicarious Surgical’s higher probable upside, analysts clearly believe Vicarious Surgical is more favorable than Neuronetics.

Profitability

This table compares Neuronetics and Vicarious Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-26.15%	-121.26%	-27.67%
Vicarious Surgical	N/A	-184.13%	-112.50%

Risk and Volatility

Neuronetics has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Vicarious Surgical has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Summary

Neuronetics beats Vicarious Surgical on 8 of the 13 factors compared between the two stocks.

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.

About Vicarious Surgical

Vicarious Surgical Inc. operates as a robotics technology company in the United States. The company focuses on developing and commercializing Vicarious System, a single-incision surgical robot that virtually transports surgeons inside the patient to perform minimally invasive surgery. Vicarious Surgical Inc. was incorporated in 2014 and is headquartered in Waltham, Massachusetts.