Head-To-Head Contrast: Sonova (OTCMKTS:SONVY) versus Neuronetics (NASDAQ:STIM)

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

Insider & Institutional Ownership

0.0% of Sonova shares are owned by institutional investors. Comparatively, 53.6% of Neuronetics shares are owned by institutional investors. 0.0% of Sonova 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 stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sonova	N/A	N/A	N/A
Neuronetics	-24.48%	-139.83%	-27.13%

Valuation & Earnings

This table compares Sonova and Neuronetics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonova	$4.50 billion	3.48	$537.01 million	N/A	N/A
Neuronetics	$151.64 million	0.67	-$39.00 million	($0.54)	-2.70

Sonova has higher revenue and earnings than Neuronetics.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sonova and Neuronetics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonova	2	3	1	2	2.38
Neuronetics	1	0	1	0	2.00

Neuronetics has a consensus target price of $3.00, indicating a potential upside of 105.48%. Given Neuronetics’ higher possible upside, analysts plainly believe Neuronetics is more favorable than Sonova.

Risk & Volatility

Sonova has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

Sonova beats Neuronetics on 9 of the 12 factors compared between the two stocks.

About Sonova

Sonova Holding AG manufactures and sells hearing care solutions for adults and children in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Hearing Instruments and Cochlear Implants segments. The Hearing Instruments segments engages in the design, development, manufacture, distribution, and service of hearing instruments and related products, as well as wireless headsets, speech-enhanced hearables, and audiophile headphones under the Phonak, Unitron, Hansaton, and Sennheiser brand names; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton Hearing brands. The Cochlear Implants segment is involved in the design, development, manufacture, distribution, and service of hearing implants and related products under the Advanced Bionics brand. The company sells its products through independent distributors; and provides hearing care services through a network of stores and clinics. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.

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.