Akili (NASDAQ:AKLI) and Nevro (NYSE:NVRO) Financial Survey

Nevro (NYSE:NVRO) and Akili (NASDAQ:AKLI) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$425.17 million	0.74	-$92.21 million	($2.29)	-3.76
Akili	$1.68 million	20.24	-$59.49 million	($0.61)	-0.71

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

Analyst Recommendations

This is a breakdown of current recommendations for Nevro and Akili, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	2	10	1	0	1.92
Akili	0	0	1	0	3.00

Nevro presently has a consensus price target of $19.46, indicating a potential upside of 126.03%. Akili has a consensus price target of $4.00, indicating a potential upside of 825.93%. Given Akili’s stronger consensus rating and higher possible upside, analysts clearly believe Akili is more favorable than Nevro.

Profitability

This table compares Nevro and Akili’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nevro	-19.17%	-27.48%	-13.40%
Akili	-2,492.04%	-79.93%	-59.16%

Volatility and Risk

Nevro has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Akili has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Nevro shares are held by institutional investors. Comparatively, 53.1% of Akili shares are held by institutional investors. 3.2% of Nevro shares are held by company insiders. Comparatively, 10.1% of Akili shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Akili beats Nevro on 8 of the 13 factors compared between the two stocks.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.

About Akili

Akili, Inc., a digital medicine company, develops cognitive treatments through game-changing technologies. The company provides EndeavorRx, a computer-based testing for cognitive dysfunction across several neurology and psychiatry indications, including attention-deficit hyperactivity disorder, depressive disorder, autism spectrum disorder, multiple sclerosis, and other neuroinflammatory diseases. It also offers selective stimulus management engine mechanism to activate the fronto-parietal cortex area in the brain; body brain trainer for attention, impulsivity, working memory, and goal management; and spatial navigation engine for spatial navigation, memory, and planning and organization. The company was founded in 2011 and is headquartered in Boston, Massachusetts.