Financial Survey: Nuvectra (NASDAQ:NVTR) & Dynatronics (NASDAQ:DYNT)

Dynatronics (NASDAQ:DYNT) and Nuvectra (NASDAQ:NVTR) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Dynatronics and Nuvectra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynatronics -1.47% -9.65% -2.32%
Nuvectra -99.08% -58.23% -34.01%

Valuation and Earnings

This table compares Dynatronics and Nuvectra’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynatronics $62.56 million 0.12 -$920,000.00 ($0.21) -4.14
Nuvectra $48.83 million 0.63 -$48.13 million ($3.19) -0.54

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dynatronics and Nuvectra, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynatronics 0 0 3 0 3.00
Nuvectra 0 0 3 0 3.00

Dynatronics currently has a consensus target price of $3.50, indicating a potential upside of 302.30%. Nuvectra has a consensus target price of $10.67, indicating a potential upside of 523.78%. Given Nuvectra’s higher possible upside, analysts clearly believe Nuvectra is more favorable than Dynatronics.

Volatility & Risk

Dynatronics has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Nuvectra has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

12.7% of Dynatronics shares are owned by institutional investors. Comparatively, 78.2% of Nuvectra shares are owned by institutional investors. 22.7% of Dynatronics shares are owned by insiders. Comparatively, 2.9% of Nuvectra shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Dynatronics beats Nuvectra on 7 of the 12 factors compared between the two stocks.

Dynatronics Company Profile

Dynatronics Corporation designs, manufactures, markets, and distributes orthopedic soft goods, medical supplies, and physical therapy and rehabilitation equipment in the United States and internationally. It offers ankle and wrist braces, hot packs, cold packs, lumbar rolls, cervical collars, slings, cervical pillows, bolsters, positioning wedges, back cushions, lotions and gels, paper products, athletic tape, splints, elastic wraps, exercise weights, exercise bands and tubing, electrodes, and rehabilitation and back products. The company also provides electrotherapy, ultrasound, phototherapy, and thermal therapy modalities; motorized and stationary treatment tables and mat platforms; custom athletic training equipment; and strength and cardio training equipment. In addition, it distributes a range of products, such as exercise equipment, treatment tables, treadmills, walkers, compression therapy devices, stair climbers, parallel bars, laser light therapy equipment, shortwave diathermy, and radial pulse equipment. The company sells its products to licensed practitioners, such as orthopedists, physical therapists, chiropractors, and athletic trainers, professional sports teams and universities, sports medicine specialists, post-acute care facilities, hospitals and clinics, retail distributors and equipment manufacturer partners through direct and independent sales representatives and independent dealers. It also exports its products to approximately 30 countries. The company was founded in 1979 and is headquartered in Cottonwood Heights, Utah.

Nuvectra Company Profile

Nuvectra Corporation, a neurostimulation medical device company, develops and commercializes neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets. The company offers Algovita, a spinal cord stimulation system for the treatment of chronic intractable pain of the trunk and limbs. It is also developing Virtis, a sacral neuromodulation (SNM) system for the treatment of chronic urinary retention and overactive bladder; and technologies to support other indications, including SNM for the treatment of overactive bladder and deep brain stimulation to treat Parkinson's disease. The company serves hospitals, surgery centers, and medical facilities through a direct sales force and third-party distributors in the United States and Europe. Nuvectra Corporation was founded in 2008 and is headquartered in Plano, Texas.

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