Head to Head Survey: Neuronetics (STIM) & Its Rivals

Neuronetics (NASDAQ:STIM) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare Neuronetics to similar companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Institutional and Insider Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 8.4% of Neuronetics shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Neuronetics has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Neuronetics’ rivals have a beta of 2.56, indicating that their average share price is 156% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-19.62%	-125.11%	-22.15%
Neuronetics Competitors	-278.16%	-150.10%	-21.89%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Neuronetics and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	4	0	2.60
Neuronetics Competitors	4266	10513	18266	826	2.46

Neuronetics presently has a consensus target price of $4.67, indicating a potential upside of 83.44%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 19.72%. Given Neuronetics’ stronger consensus rating and higher probable upside, analysts clearly believe Neuronetics is more favorable than its rivals.

Earnings & Valuation

This table compares Neuronetics and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Neuronetics	$155.10 million	-$39.00 million	-5.78
Neuronetics Competitors	$1.89 billion	$138.79 million	11.19

Neuronetics’ rivals have higher revenue and earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Neuronetics rivals beat Neuronetics on 7 of the 13 factors compared.

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.