Olympus (OTCMKTS:OCPNY) & Neuronetics (NASDAQ:STIM) Head-To-Head Review

Neuronetics (NASDAQ:STIM) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 0.0% of Olympus shares are held by institutional investors. 8.4% of Neuronetics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$149.16 million	1.13	-$39.00 million	($0.44)	-5.02
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

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

Volatility and Risk

Neuronetics has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Neuronetics and Olympus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	4	0	2.60
Olympus	0	0	1	0	3.00

Neuronetics currently has a consensus target price of $4.67, suggesting a potential upside of 111.07%. Given Neuronetics’ higher probable upside, research analysts clearly believe Neuronetics is more favorable than Olympus.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-19.62%	-125.11%	-22.15%
Olympus	13.80%	24.30%	9.30%

Summary

Olympus beats Neuronetics on 9 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 Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.