Akili (NASDAQ:AKLI) & Nevro (NYSE:NVRO) Critical Comparison

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akili	$1.95 million	17.46	-$59.49 million	($0.61)	-0.71
Nevro	$425.17 million	0.72	-$92.21 million	($2.29)	-3.66

Akili has higher earnings, but lower revenue than Nevro. Nevro is trading at a lower price-to-earnings ratio than Akili, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Akili has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Nevro has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Akili and Nevro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akili	0	0	1	0	3.00
Nevro	2	10	1	0	1.92

Akili presently has a consensus price target of $4.00, suggesting a potential upside of 825.93%. Nevro has a consensus price target of $19.46, suggesting a potential upside of 132.24%. Given Akili’s stronger consensus rating and higher probable upside, equities analysts clearly believe Akili is more favorable than Nevro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Akili	-2,492.04%	-79.93%	-59.16%
Nevro	-19.17%	-27.48%	-13.40%

Institutional and Insider Ownership

53.1% of Akili shares are owned by institutional investors. Comparatively, 95.5% of Nevro shares are owned by institutional investors. 10.1% of Akili shares are owned by company insiders. Comparatively, 3.2% of Nevro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Akili beats Nevro on 8 of the 13 factors compared between the two stocks.

About Akili

Akili, Inc., a digital medicine company, develops cognitive treatments through game-changing technologies. The company provides EndeavorRx, a computer-based testing for cognitive dysfunction across several neurology and psychiatry indications, including attention-deficit hyperactivity disorder, depressive disorder, autism spectrum disorder, multiple sclerosis, and other neuroinflammatory diseases. It also offers selective stimulus management engine mechanism to activate the fronto-parietal cortex area in the brain; body brain trainer for attention, impulsivity, working memory, and goal management; and spatial navigation engine for spatial navigation, memory, and planning and organization. The company was founded in 2011 and is headquartered in Boston, Massachusetts.

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.