Reviewing Beta Bionics (NASDAQ:BBNX) & Neuronetics (NASDAQ:STIM)

Beta Bionics (NASDAQ:BBNXGet Free Report) and Neuronetics (NASDAQ:STIMGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares Beta Bionics and Neuronetics”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Beta Bionics $100.25 million 6.17 -$73.20 million ($1.51) -9.19
Neuronetics $149.16 million 0.57 -$39.00 million ($0.54) -2.28

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

Profitability

This table compares Beta Bionics and Neuronetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Beta Bionics -60.27% -23.00% -20.55%
Neuronetics -24.48% -139.83% -27.13%

Analyst Recommendations

This is a summary of recent ratings and target prices for Beta Bionics and Neuronetics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beta Bionics 1 3 6 1 2.64
Neuronetics 1 0 1 0 2.00

Beta Bionics presently has a consensus target price of $19.70, suggesting a potential upside of 41.93%. Neuronetics has a consensus target price of $3.00, suggesting a potential upside of 143.90%. Given Neuronetics’ higher possible upside, analysts plainly believe Neuronetics is more favorable than Beta Bionics.

Insider and Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. 5.3% of Beta Bionics shares are owned by company insiders. Comparatively, 8.4% of Neuronetics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Beta Bionics has a beta of 3.4, indicating that its share price is 240% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Summary

Neuronetics beats Beta Bionics on 8 of the 15 factors compared between the two stocks.

About Beta Bionics

(Get Free Report)

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

About Neuronetics

(Get Free Report)

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.

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