Neuronetics (NASDAQ:STIM – Get Free Report) and Retractable Technologies (NYSE:RVP – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares Neuronetics and Retractable Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -45.06% | -109.00% | -31.72% |
| Retractable Technologies | -46.72% | -18.67% | -10.24% |
Institutional & Insider Ownership
53.6% of Neuronetics shares are held by institutional investors. Comparatively, 7.6% of Retractable Technologies shares are held by institutional investors. 9.8% of Neuronetics shares are held by insiders. Comparatively, 55.0% of Retractable Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $71.35 million | 0.50 | -$30.19 million | ($1.12) | -1.04 |
| Retractable Technologies | $43.60 million | 0.50 | -$7.01 million | ($0.61) | -1.20 |
Retractable Technologies has lower revenue, but higher earnings than Neuronetics. Retractable Technologies is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Neuronetics has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Retractable Technologies has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Neuronetics and Retractable Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 0 | 1 | 3 | 0 | 2.75 |
| Retractable Technologies | 0 | 0 | 0 | 0 | 0.00 |
Neuronetics presently has a consensus target price of $4.67, indicating a potential upside of 298.86%. Given Neuronetics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Neuronetics is more favorable than Retractable Technologies.
Summary
Neuronetics beats Retractable Technologies on 8 of the 14 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 Retractable Technologies
Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.
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