Neogen (NASDAQ:NEOG – Get Free Report) and AtriCure (NASDAQ:ATRC – Get Free Report) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Analyst Ratings
This is a summary of current ratings for Neogen and AtriCure, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neogen | 1 | 1 | 3 | 0 | 2.40 |
| AtriCure | 1 | 4 | 6 | 1 | 2.58 |
Neogen currently has a consensus price target of $12.67, indicating a potential upside of 12.79%. AtriCure has a consensus price target of $62.30, indicating a potential upside of 9.61%. Given Neogen’s higher possible upside, equities analysts plainly believe Neogen is more favorable than AtriCure.
Valuation and Earnings
This table compares Neogen and AtriCure”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neogen | $870.40 million | 2.82 | -$7.90 million | ($0.25) | -44.92 |
| AtriCure | $534.53 million | 5.41 | -$11.45 million | $0.30 | 189.47 |
Neogen has higher revenue and earnings than AtriCure. Neogen is trading at a lower price-to-earnings ratio than AtriCure, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
96.7% of Neogen shares are held by institutional investors. Comparatively, 99.1% of AtriCure shares are held by institutional investors. 0.5% of Neogen shares are held by insiders. Comparatively, 4.0% of AtriCure shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Neogen and AtriCure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neogen | -6.35% | 3.29% | 2.06% |
| AtriCure | 2.52% | 4.01% | 3.03% |
Risk and Volatility
Neogen has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, AtriCure has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Summary
AtriCure beats Neogen on 11 of the 15 factors compared between the two stocks.
About Neogen
Neogen Corporation develops and markets products and services focused on food and animal safety. Its offerings help food producers, processors, laboratories and livestock producers detect risks, support animal health and meet safety and quality requirements. Neogen’s food safety products include tests for foodborne pathogens, allergens, toxins and sanitation indicators, as well as related laboratory supplies and services. Its animal safety offerings include veterinary instruments, animal health products, biosecurity solutions and genetic testing services for livestock.
About AtriCure
AtriCure, Inc. is a medical technology company that develops and sells products for the treatment of atrial fibrillation and other conditions addressed through cardiac surgery. Its technologies are used by surgeons and other medical professionals in hospital settings. The company’s products include surgical ablation systems designed to treat irregular heart rhythms and devices for managing the left atrial appendage, a small pouch in the heart associated with stroke risk in some patients with atrial fibrillation.
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